Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles.
B. an increase in economic growth.
C. an increase in unemployment.
D. a reduction in unemployment.
Answer: A
You might also like to view...
In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The rent ceiling leads to a
A) shortage of 1000 apartments. B) shortage of 2000 apartments. C) surplus of 1000 apartments. D) surplus of 2000 apartments.
The vertical classical aggregate supply curve reflects that
a. money wages adjust proportionally with the price level. b. real wages are always the same. c. aggregate output is always the same. d. None of the above. e. Both b and c.
The reason that velocity increases when interest rates rise is
a. the Fed encourages banks to turn money in faster for recycling, which causes money to move faster. b. the opportunity cost of saving increases, so people hold smaller cash balances. c. home mortgage payments increase, so people write larger checks that reduces their checking account balances. d. the opportunity cost of holding money increases, so average money balances decrease.
Frictional unemployment depends on _____
a. the age distribution of the population b. the years of work experience of the population c. the education level of the female population d. the ethnicity of the male population