Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. Suppose the economy is currently at Point A producing potential output Y0. If the government decreases spending, the economy moves to Point ________ in the short run and to Point ________ in the long run.
A. B; C
B. D; E
C. C; B
D. B; D
Answer: B
You might also like to view...
Ajax Corporation has just decided to let managers work from home one day a week. This decision will make working conditions better and will
A) cause the demand curve for labor for managers to increase. B) increase the elasticity of demand for labor for managers. C) lead to an increase in the supply curve of labor for managers. D) leave the supply curve of labor unchanged.
Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:
a. destroy the rice market in both countries. b. drive X to specialize in rice and Y to specialize in tuna. c. drive Y to specialize in rice and X to specialize in tuna. d. cause both X and Y to reject international specialization. e. result in lower total output of rice and tuna.
Stock markets in England were started in the late:
A. Seventeenth century. B. Sixteenth century. C. Eighteenth century. D. Nineteenth century.
If the government presets a price that turns out to be above the actual equilibrium price, a surplus will develop in the market.
Answer the following statement true (T) or false (F)