Refer to the following graphs.
Which of the graphs correctly labels the axes of the AS-AD model?
A. Graph (1)
B. Graph (2)
C. Graph (3)
D. Graph (4)
Answer: D
You might also like to view...
Suppose the money demand of individuals and firms depends on what they perceive to be the probabilities that the economy will expand or contract over the following six months
Suppose their money demand is given by the equation L = 0.5Y - 100i + 20z, where z is the probability that the economy is expanding six months in the future. If z = 1, the economy will certainly be in recovery, if z = 0, the economy will certainly be in recession, and for z between 0 and 1 there is some uncertainty about the future state of the economy. Use a classical (RBC) model of the economy. If the Fed moves the money supply to target the price level, how does the money supply relate to the expected future state of the economy? Is this an example of reverse causation?
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves b. Another customer enters the store, interested in the car c. He gets an offer from another seller d. All of the above
The CPI basket of goods represents those goods and services purchased by urban consumers because it represents:
A. over 90 percent of our population. B. over 80 percent of our population. C. 78 percent of our population. D. 60 percent of our population.
Other things being equal, during a period when the federal government issues more Treasury securities to borrow funds
A. the flow of government expenditures during that period must exceed the stock of tax collections. B. the flow of government expenditures during that period must exceed the flow of tax revenues. C. the stock of government deficit spending during that period must exceed the stock of tax collections. D. the stock of government deficit spending during that period must exceed the flow of tax revenues.