Refer to Figure 13-3. Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y1 represents potential GDP
A) A and B B) B and D C) A and C D) C and D
B
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In the above figure, if the real interest rate is 8, there is
A) underproduction in this economy. B) a surplus of loanable funds. C) a shortage of loanable funds. D) a shortage in available funds for investment.
How would the real exchange rate need to change to get aggregate expenditure to increase?
A. Increase B. Decrease C. Remain constant D. Exchanges rates don’t generally affect aggregate expenditure.
The long-run aggregate supply curve is vertical, and the short-run aggregate supply curve is upward sloping
a. True b. False Indicate whether the statement is true or false
We currently run a negative trade balance in ______ and a ______ trade balance in services.
Fill in the blank(s) with the appropriate word(s).