Refer to Figure 24-1. Ceteris paribus, an increase in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
A
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Identify the correct statement. a. In periods of low inflation, real wages are constant but nominal wages decline
b. If the price level increases, real wages will increase. c. If the price level increases, nominal wages will fall. d. In periods of high inflation, real wages change even if nominal wages remain constant. e. If the inflation rate is high, real wages and nominal wages change by the same amount.
Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once
a. True b. False Indicate whether the statement is true or false
When stock markets crash because of changes in the expected future sale price of an asset rather than changes in fundamental stock price determinants, economists refer to the situation as
A. God's will. B. a ghost. C. just desserts. D. a bubble.
Refer to the graph shown. What distance represents average profits?
A. BF B. AB C. FW D. AF