Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. An expansionary fiscal policy followed by a leftward shift in the AS curve could move the economy from Point A to Point ________, and then to Point ________.
A. B; E
B. E; B
C. C; D
D. D; C
Answer: C
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After the inflation of the Johnson-Nixon-Ford years (1963–1976), the Carter Administration, while still inflationary, managed to slow down the rate of advancing prices
Indicate whether the statement is true or false
Which of the following is a reason why trade and geography are linked?
A) There are high costs of locating in large urban areas. B) Many industries have no economies of scale. C) Competition means that all firms want to locate near each other. D) Some locations give access to pools of skilled labor or special resources.
In the equation of exchange, the level of aggregate expenditures is indicated by:
A. MV. B. MV/Q. C. PM. D. MV/P.
Because prices change too slowly in the short-run and as a result, they do not quickly equalize the quantity demanded and quantity supplied of goods and services, the short-run response of the economy to a demand shock is through:
A) changes in employment but not in output. B) changes in prices rather than through changes in employment. C) changes in output but not in the employment. D) changes in output and employment levels rather than through changes in prices.