Look at the above figure. Suppose the economy was initially in equilibrium at point A. What point would represent the short-run equilibrium if the Fed makes an open market purchase of bonds?
A) A B) B C) C D) D
B
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According to the Keynesian model with fixed money wages, real wages should be
a. negatively correlated with changes in output. b. positively correlated with changes in unemployment. c. negative correlated with changes in the price level. d. fixed as well. e. both a and c.
An agreement with another country in which it agrees to import more from the United States is called a
A) VRA. B) VIE. C) VAR. D) VAT.
If the price of a depleting resource does not rise as anticipated, it may be because
A. the government prohibited the methods to extract the resource. B. new methods of mining or refining were developed. C. a price floor was passed by law. D. firms that distribute the resource cartelized.
Which of the following would best explain a decrease in the supply of squash?
A. A decrease in the price of squash B. An increase in the price of squash C. An increase in the price of other vegetables D. A decrease in the cost of growing squash