Use the following graph to answer the next question.
If aggregate demand curve shifts from AD2 to AD1, the effect on real GDP will be a decrease from ________.
A. Q3 to Q4
B. Q2 to Q4
C. Q3 to Q1
D. Q2 to Q1
Answer: D
You might also like to view...
Okun's Law states that
A) there is a relationship between the unemployment rate, real GDP, and potential GDP. B) supply creates its own demand. C) as the unemployment rate rises, the inflation rate falls. D) a higher inflation rate leads to a higher nominal interest rate. E) as the real wage rate falls, the quantity of labor demanded increases.
A decrease in the unemployment rate which is accompanied by an increase in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
For consideration of such issues as labor's productivity growth nationwide, the relevant measure is the
A) marginal product of labor. B) average product of labor. C) total product of labor. D) wage. E) cost of capital.
Which of the following was not a cause of the Savings and Loan crisis of the 1980s?
(A) The gold standard (B) High interest rates (C) The deregulation of the industry (D) Bad loans