??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (b) of Exhibit 16A-2, a Keynesian expansionary stabilization policy designed to move the economy from Y1 to Yp would attempt to shift the
A. ?aggregate demand curve (AD) leftward.
B. ?SRAS curve leftward.
C. ?aggregate demand curve (AD) rightward.
D. ? LRAS curve rightward.
Answer: A
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What happens if price falls below the market clearing price?
A. Supply shifts in. B. Demand shifts out. C. Quantity demanded decreases, quantity supplied increases, and a surplus results. D. Quantity demanded increases, quantity supplied decreases, and a shortage results.
An unexpected import restriction imposed on mangoes by the USDA
A. will increase the price of mangoes in the United States. B. will reduce the price of mangoes in the United States. C. will reduce the price of mango juice in the United States. D. will discourage American producers of mangoes.
Bank accounts and bonds are examples of money-fixed assets.
Answer the following statement true (T) or false (F)
The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. This information could be used to determine
A) the slope of Bobby's demand curve for juice. B) the amount by which Bobby's demand curve for juice shifts when his income rises. C) the amount by which Bobby's demand curve for juice shifts when the price of snacks rises. D) All of the above.