Suppose a recession overseas reduces a country's exports. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?
The aggregate-demand curve would shift to the left.
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In a fractional-reserve banking system the reserve/deposit ratio equals:
A. 100 percent. B. more than 100 percent. C. less than 100 percent. D. currency held by the public divided by deposits.
The source of the adverse selection problem is ______
a. that individuals with high incomes are able to pay all medical costs out-of-pocket b. that individuals least likely to need health care do not purchase insurance c. individuals lack important information regarding the appropriate health care for them d. individuals desire to have comprehensive health care insurance
Consider the above table. Assuming the government imposes a price ceiling on garbanzo beans of $4, what would be the likely result?
A) a surplus of 2,000 garbanzo beans B) a shortage of 2,000 garbanzo beans C) No change, equilibrium would prevail. D) The quantity demanded of garbanzo beans would fall to zero.
Using Figure 3 below the distance between what 2 lines illustrate a recessionary output gap?
A. PAE2 to PAE3
B. PAE1 to PAE2
C. Y1 to Y2
D. Y2 to Y3