A movement from Point A to Point B in Figure 9.5 would result in
A. An increase in aggregate demand.
B. A decrease in both aggregate demand and aggregate supply.
C. A decrease in aggregate demand.
D. An increase in aggregate demand and a decrease in aggregate supply.
Answer: A
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Refer to Figure 17-9. Fed Chairman Paul Volcker's response to the ________ of the late 1970s is depicted in the figure above as a movement from C to D to A
A) appreciation of the dollar B) deflation C) high inflation D) high unemployment
The ________ describes points for which the goods market is in equilibrium
A) LM curve B) IS curve C) consumption function D) investment schedule
Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish
Now, one worker mixes the dough, another shapes it, the third puts the unbaked pretzels into the oven and the fourth removes the finished product. Output has doubled. This is an example of A) neutral technical change. B) labor-saving technical change. C) an organizational innovation. D) economies of scale.
International trade between two nations increases the standard of living of both nations due to
A) specialization and gains from absolute advantage. B) specialization and gains from comparative advantage. C) high tariffs. D) political intervention.