Refer to the above figure. If the relevant aggregate demand curve is AD2, what is the current economic situation?
A. overemployment
B. inflationary gap
C. recessionary gap
D. equilibrium
Answer: B
You might also like to view...
An increase in demand will always
A. increase consumer surplus. B. increase producer surplus. C. decrease consumer surplus and increase consumer surplus. D. increase producer surplus and increase consumer surplus.
An appreciation of the U.S. dollar
A) makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports. B) makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports. C) makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports. D) makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to fall. b. Demand for real goods and services to remain the same and M2 money supply to rise. c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same. d. Demand for real goods and services to rise and monetary base to remain the same.
________ is the price paid for the use of money.
A. Gold B. Fiscal policy C. Monetary policy D. The interest rate