Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A. the unemployment rate will be smaller than the rate before the expansionary monetary policy.
B. the unemployment rate will be larger than the rate before the contractionary monetary policy.
C. the unemployment rate will be the same rate as before the expansionary monetary policy.
D. the unemployment rate can increase or decrease depending upon how much the LRAS will shift.
Answer: B
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A perfectly competitive firm is a price
A. giver. B. taker. C. maker. D. leader.
Which of the following statements is TRUE of static tax analysis?
A) A government receives lower tax revenues by raising the tax rate. B) A government receives higher tax revenues by raising the tax rate. C) A government cannot change it tax revenues by changing the tax rate. D) A change in the tax rate can raise or lower tax revenues, depending on other factors.
Answer the following statement true (T) or false (F)
1) Farmers typically sell their products in highly competitive markets and buy in imperfectly competitive markets. 2) If the demand for agricultural products is inelastic, a relatively small increase in supply will cause farm prices and incomes to decline. 3) The use of price-support programs in agriculture has hastened the exodus of resources from agriculture. 4) The concept of parity has provided a rationale for government price supports for farm products.
A common resource is
A. nonexcludable and rival in consumption. B. excludable and nonrival in consumption. C. excludable and rival in consumption. D. nonexcludable and nonrival in consumption.