Based on this graph, the multiplier effect shifts the aggregate demand curve from ______.
a. AD1 to AD2
b. AD2 to AD1
c. AD2 to AD3
d. AD1 to AD1
c. AD2 to AD3
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The more excess reserves banks choose to keep
A) the lower the required reserve ratio. B) the smaller the deposit multiplier. C) the larger the deposit multiplier. D) the higher the required reserve ratio.
The extra benefit associated with producing or consuming the next unit is called the:
A. revenue product. B. spillover. C. marginal benefit. D. economic benefit.
Under the rational expectations hypothesis, which of the following is the most likely effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain; in the long run, it will remain unchanged.
The Packers and Stockyards Act of 1921
A) reinforced antitrust laws regarding livestock marketing. B) established the Packers and Stockyards Administration, still exists today. C) was the principal legislation exempting cooperatives from antitrust laws. D) Both A and C