During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP
What will be an ideal response?
the AD curve will shift rightward continuously and SAS curves will shift leftward continuously.
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Exhibit 10-1A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:SR AC = 2Q + 3MC = 4Q + 3where costs are measured in dollars and Q represents the firm's output in units. If the market price of wangdoodles is $15 each, the profit-maximizing producer whose short-run cost curves are given in Exhibi should produce ____ wangdoodles.
A. 0 B. 3 C. 6 D. 15
If policymakers increase aggregate demand, then in the short run the price level
a. falls and unemployment rises. b. and unemployment fall. c. and unemployment rise. d. rises and unemployment falls.
Use the following general linear demand relation:Qd = 100 - 5P + 0.004M - 5PRwhere P is the price of good X, M is income, and PR is the price of a related good, R. If M = $50,000 and PR= $10 and the supply function is Qs = 150 + 5P, market price and output are, respectively,
A. P = $10 and Q = 200. B. P = $12 and Q = 150. C. P = $15 and Q = 175. D. P = $12 and Q = 200. E. P = $15 and Q = 225.
Focal point equilibria definitely violate the principle of rational choice.
Answer the following statement true (T) or false (F)