Refer to the graph shown. If the price level is P1, then:
A. both input prices and output will rise in the long run.
B. both input prices and output will fall in the long run.
C. input prices will rise and output will fall in the long run.
D. input prices will fall and output will rise in the long run.
Answer: C
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Suppose the Fed purchases $1 million in bonds in the open market. Explain how the money supply can increase by more than $1 million
What will be an ideal response?
In the 1990s Japan had the lowest interest rates in the world due to a combination of
A) inflation and recession. B) deflation and expansion. C) inflation and expansion. D) deflation and recession.
Which of the following is true of bureaus?
a. They are highly sensitive to consumer feedback. b. They create laws to govern the functioning of an economy. c. They control the money supply in the economy. d. They implement the laws created by the government.
The Keynesian analysis of macroeconomic equilibrium shows
A. how declines in aggregate supply can cause prosperity. B. how declines in aggregate demand can cause economic expansion. C. how declines in aggregate purchases can result in a recession and cyclical unemployment. D. All of the choices are correct.