In this graph, more government purchases and/or lower taxes will move the equilibrium ______.
a. off the LRAS curve
b. off the SRAS curve
c. from point e1 to point E2
d. from point E2 to point e1
c. from point e1 to point E2
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A firm sells a product in a purely competitive market. The marginal cost of the product at the current output level of 800 units is $3.50. The minimum possible average variable cost is $3. The market price of the product is $4. To maximize profits, the firm should
A. decrease production to less than 800 units. B. continue producing 800 units. C. increase production to more than 800 units. D. shut down.
An increase in the amount of capital per worker always increases the value of output
a. True b. False Indicate whether the statement is true or false
If the demand curve for a good shifts leftward,
A) quantity demanded is less at each price. B) quantity demanded remains constant at each price. C) quantity demanded is greater at each price. D) demand is greater at each price.
A country with a fixed exchange rate faces:
a. no monetary policy constraints in the long run. b. no monetary policy constraints in the short run. c. no monetary policy constraints in the long run and the short run. d. monetary policy constraints in the long run and the short run