In this graph, what is different about equilibrium levels E1 and E3 compared to e2?
a. Price levels are higher at both E1 and E3 than at e2.
b. Price levels are lower at both E1 and E3 than at e2.
c. Level e2 is sustainable, whereas levels E1 and E3 are not.
d. Levels E1 and E3 are both sustainable, whereas e2 is not.
d. Levels E1 and E3 are both sustainable, whereas e2 is not.
You might also like to view...
If inflation does not adjust rapidly in the short run, then when the Federal Reserve increases the nominal interest rate, the real interest rate in the short run will ________.
A. decrease B. be determined by saving and investment decisions. C. increase D. not change
Which of the following best measures improvements in the standard of living of a nation?
A. growth of real GDP B. growth of nominal GDP C. growth of real GDP per capita D. growth of national income
When marginal private cost is less than marginal social cost,
A. a public good exists. B. a negative externality exists. C. a positive externality exists. D. negative economic profits are made. E. a and d
Economists call the fact that the general public has little incentive to become informed about most political issues _____
a. rational ignorance b. irrational voting c. a diminishing political marketplace d. cyclical political institutions