Exhibit 14A-1 Aggregate demand and supply model
As shown in Exhibit 14A-1 and assuming the aggregate demand curve shifts from AD1to AD2, the full-employment level of real GDP is:
A. $12 billion.
B. $8 billion.
C. $150 billion.
D. unable to be determined.
Answer: B
You might also like to view...
Suppose all firms in a competitive market are currently in both short-run and long-run equilibrium. What impact will a lump sum tax have on each firm in the short run? in the long run?
What will be an ideal response?
African countries contain a third of the world's population and over half of the world's extreme poverty
Indicate whether the statement is true or false
[Appendix; Advanced Material] If an airline company decides to buy smaller jets with fewer seats, then the problem of:
a. spillage and spoilage both increase. b. spillage decreases, but spoilage increases. c. spillage and spoilage both decrease. d. spoilage decreases, but spillage increases.
Which of the following would be entered as a credit in the financial account of the United States?
a. Purchase of U.S. Treasury bonds by Americans b. Purchase of U.S. Treasury bonds by foreigners c. Purchase of U.S. made cars by foreigners d. Income earned by the U.S. from tourism e. Purchase of foreign stocks by U.S. investors