Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
A) the economy is below full employment.
B) firms are operating at below capacity.
C) there is pressure on wages and prices to fall.
D) income and profits are falling.
E) the unemployment rate is very low.
E
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An example of an ongoing expense for a toy company would be buying:
A. a delivery truck, and would be included in total cost. B. a new factory, and would be excluded from total cost. C. advertising for their products, and would be included in total cost. D. None of these is true.
Which of the following carries out surveys to measure international trade in services?
a. Census Bureau b. Department of Trade c. Bureau of Economic Analysis d. Department of the Treasury
In the Solow model, if productivity doesn't change,
A. the capital-labor ratio must rise. B. the capital-labor ratio must decline. C. the economy must eventually reach a steady state. D. there can be no saving.
The above table shows production combinations on a country's production possibilities frontier. A movement from ________ involves the greatest opportunity cost of increasing the production of good Y
A) point E to point D B) point D to point C C) point C to point B D) point B to point A