Use the following graph to answer the next question.
If current output is Q1 and full-employment output is Q2, then in the long run the short aggregate supply schedule is ________.
A. AS1
B. AS2
C. AS3
D. AD
Answer: B
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Supply-side economics focuses attention on how fiscal policy might be used to
A) shift the aggregate supply curve out. B) increase consumption. C) align aggregate demand and aggregate supply. D) increase aggregate demand to the full-employment level of real GDP.
The game in Scenario 13.14
A) is Stackelberg if both players move at the same time; Cournot if one player moves first. B) is Cournot if both players move at the same time; Stackelberg if one player moves first. C) Stackelberg no matter what the timing of moves. D) Cournot no matter what the timing of moves. E) is neither Stackelberg nor Cournot.
Which of the following is true of the total revenue curve of a firm in a perfectly competitive market? a. The total revenue curve is independent of the market price
b. As market price increases, the slope of the total revenue curve becomes flatter. c. As market price increases, the slope of the total revenue curve becomes steeper. d. As market price increases, the slope of the total revenue curve approaches zero.
Suppose that the economy is operating below the full employment level of real GDP. If a liquidity trap exists, a(an) ________ policy would be most effective for solving the problem.
A. expansionary monetary policy B. contractionary fiscal policy C. expansionary fiscal policy D. contractionary monetary policy