In this graph, in order for contractionary policy to put equilibrium on the LRAS curve, ______.
a. price level and output must decrease
b. price level must decrease, and output must increase
c. price level and output must increase
d. price level must increase, and output must decrease
a. price level and output must decrease
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Assume the price of Advil increases. As a result, you decrease the quantity of Advil purchased each month and purchase more Tylenol. This is an example of the:
a. income effect. b. utility effect. c. consumption effect. d. substitution effect.
??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (b) of Exhibit 16A-2, a Keynesian expansionary stabilization policy designed to move the economy from Y1 to Yp would attempt to shift the
A. ?aggregate demand curve (AD) leftward. B. ?SRAS curve leftward. C. ?aggregate demand curve (AD) rightward. D. ? LRAS curve rightward.
Which round of GATT first addressed subsidies?
What will be an ideal response?
Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging and other expenses. So far, she has managed to save $20,000. What is the change in her saving per month after the increase in income?
What will be an ideal response?