Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C
A) supply shock, such as rising oil prices,
B) implementation of contractionary monetary policy
C) increase in short-run aggregate supply
D) increase in aggregate demand
A
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Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Real risk-free interest rate will remain unchanged, but the money multiplier will rise. b. Real risk-free interest rate will fall causing real GDP to rise. c. Real risk-free interest rate will fall causing the money multiplier to rise. d. Real risk-free interest rate will rise but real GDP will remain the same. e. Real risk-free interest rate will rise causing real GDP to fall.
Suppose a country decreases government purchases by $400 billion. Suppose the government spending multiplier is 1.5 and the economy's real GDP is $8,000 billion. This contractionary policy action shifts the aggregate demand curve to the left by
A) $12,000 billion. B) $600 billion. C) $533.3 billion. D) $266.6 billion.
Perfect competitors operate at peak efficiency in
A. both the short run and the long run. B. neither the short run nor the long run. C. only the short run. D. only the long run.
A and B are going to play a game twice. During both repetitions, if they both select a low price or a high price, their market share stays the same. But if one selects a low price while the other selects a high price, then the one with the low price gets more money while the one with the high price loses some market share. Based on this information, what is the most likely outcome in both periods?
What will be an ideal response?