Refer to the information provided in Figure 26.2 below to answer the question(s) that follow.
Figure 26.2Refer to Figure 26.2. This economy reaches capacity at
A. $300 billion.
B. $600 billion.
C. $900 billion.
D. an output level that is indeterminate from this information because aggregate demand is not given.
Answer: C
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Discuss the effects of ongoing inflation based on the PPP theory
What will be an ideal response?
A change in net taxes affects the equilibrium quantity of GDP demanded_____
a. in the same way as a change in government purchases does b. in the same way as a change in planned investment does c. in the same way as a change in net exports does d. only indirectly, changing the level of disposable income e. in an unpredictable manner
Which of the following is a reason behind the rise in US trade over the last 80 years?
A) Rising government expenditure B) Improved bureaucracy C) Improved transportation technology D) Falling consumption expenditure