Refer to Figure 27-1. Suppose the economy is in short-run equilibrium below potential GDP and no fiscal or monetary policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) C to B. C) B to C. D) B to A. E) A to B.
A
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Barter is the direct exchange of goods and services for: a. any kind of money
b. other goods and services. c. either goods or money. d. commodity money. e. foreign currency.
The price index for the current year is 180 . This means that, on average, prices in the current year are:
a. 80 percent of prices in the base year. b. $1.80 higher than prices in the base year. c. 180 percent higher than prices in the base year. d. $0.80 higher than prices in the base year. e. 80 percent higher than prices in the base year.
The relative cost of achieving a fixed standard of living in different situations is called:
A. a cost of living index. B. compensating variation. C. real income. D. consumer surplus.
? In 2005, the percentages of mortgages that were considered sub-prime:
a. increased dramatically.
b. increased minimally
c. decreased minimally.
d. decreased dramatically.