The Keynesian region of the aggregate supply curve represents an economy with:
a. high unemployment and low inflation.
b. low unemployment and low inflation.
c. low unemployment and high inflation.
d. high unemployment and high inflation.
e. excess capacity but no unemployment or inflation.
a
You might also like to view...
If total income in Sweden remains the same but the wage share of income rises, the Swedish AD curve will most likely:
A. shift to the left. B. become steeper. C. become flatter. D. shift to the right.
Empirical studies suggest that:
A. labor productivity has declined throughout U.S. history. B. technological advances account for about 40 percent of U.S. productivity growth. C. the achieving of economies of scale is the most important factor in U.S. economic growth. D. all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.
Refer to the graphs, where the subscripts on the labels denote years 1 and 2. From the graphs we can clearly conclude that the economy:
A. is not at full employment in either year.
B. is at full employment in year 1 but not in year 2.
C. is at full employment in year 2 but not in year 1.
D. is at full employment in both years.
If policymakers deem inflation as being too high, then the policy response should be monetary ________, which shifts aggregate demand______.
A. easing; a left B. easing; right C. tightening; left D. tightening; right