If the government enacts contractionary fiscal policy, it is most likely at which of the following equilibria in the graph shown?



A. A

B. B

C. C

D. D


D. D

Economics

You might also like to view...

A corporation issues a three year bond with a coupon of $50 and a face value of $1000. Immediately after being issued, market interest rates decline to 4%. What is the price of the bond? Report your answer to the nearest dollar

What will be an ideal response?

Economics

The consumer price index (CPI) is designed to measure

a. the impact of price changes on the value of real GDP. b. the nominal value of consumer spending on food, clothing, and energy. c. the total spending of households as a percentage of GDP. d. the impact of price changes on the cost of the typical bundle of goods purchased by households.

Economics

If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

a. an economic boom b. highly attractive profit margins c. output less than the economy's long-run potential d. a sharp increase in imports

Economics

Which of the following is an example of a bank's assets?

A) reserves borrowed from the Fed B) checkable deposit C) vault cash D) savings deposits

Economics