Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely

A) increase taxes.
B) increase oil prices.
C) increase government spending.
D) lower interest rates.
E) decrease government spending.


C

Economics

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The demand curve for labor is negatively sloped only because the firm must lower its price if it wishes to sell more output

Indicate whether the statement is true or false

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What happens to the price of bonds when the Fed is selling bonds? What happens to the interest rate? What happens to the money supply?

What will be an ideal response?

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Which of the following is an example of a capital resource?

a. redwood trees b. unskilled labor c. stocks and bonds d. an oil rig

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Why is the multiplier principle important?

What will be an ideal response?

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