Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y1.
C. P3 and Y1.
D. P3 and Y2.
Answer: D
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Refer to Figure 18.4. With an import ban, how many gloves are produced domestically in Duckland?
A) 100 B) 80 C) 60 D) 0
The FOMC is the
A) name of the meeting the Fed has with Congress twice a year. B) report that summarizes the economy across Fed districts. C) report the Fed gives to Congress twice a year. D) group within the Fed that makes monetary policy. E) interest rate the Fed most directly influences.
Business cycles all display the following characteristics except
A) a period of expansion followed by one of contraction. B) comovement of many economic variables. C) rising prices during an expansion and falling prices during the contraction. D) they last a period of one to twelve years.
According to the Taylor rule, if actual output is greater than the natural rate of output, then the Fed should
a. decrease inflation. b. increase interest rates. c. conduct open market sales. d. decrease interest rates. e. Both a and b