An economy operating to the left of its LRAS is operating ______.
a. inside its production possibilities curve
b. outside its production possibilities curve
c. on its production possibilities curve
d. without a production possibilities curve
a. inside its production possibilities curve
You might also like to view...
When the United States engaged in quantitative easing from 2008 to 2014, why didn't the money supply rise sharply?
A) Foreigners wanted all the new dollars created by the Federal Reserve. B) Banks held the increased monetary base as excess reserves. C) The Fed offset the increased monetary base by raising reserve requirements. D) The Fed offset the increased monetary base by buying foreign currency.
Price ceilings lead to market surpluses
a. True b. False Indicate whether the statement is true or false
Making more frequent, but smaller cash withdrawals from banks ________ the inflation losses from holding cash and ________ the shoe leather costs of inflation.
A. reduces; increases B. increases; increases C. reduces; has no impact on D. increases; reduces
A sharp increase in oil prices along with a decline in labor productivity decline will likely shift the:
A. aggregate demand curve to the left. B. short-run aggregate supply curve up (to the left). C. short-run aggregate supply curve down (to the right). D. aggregate demand curve to the right.