In the self-correcting AD-AS model, the economy's short-run equilibrium position is indicated by the intersection of which two curves?
A. short-run aggregate supply and long-run aggregate supply
B. short-run aggregate supply and aggregate demand
C. long-run aggregate supply and aggregate demand
D. long-run aggregate demand and short-run personal consumption expenditures curve
Answer: B
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Refer to Figure 18-2. Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above?
A) Interest rates rise in the United States. B) Real income falls in England. C) Real income rises in the United States. D) Interest rates rise in England.
Suppose an economy experiences an increase in its saving rate. The higher saving rate leads to a higher growth rate of productivity in the short- run.
a. true b. false
The opportunity cost of holding money is measured by the _____
What will be an ideal response?
Gross domestic product understates the total production of final goods and services because of the omission of
A) the underground economy. B) intermediate goods. C) inflation. D) exports.