Refer to Figure 10.3. A positive demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1
B) a shift from AE2 to AE3; a shift from IS1 to IS2
C) a shift from AE1 to AE2; a movement from point A to point B
D) a shift from AE1 to AE3; a movement from point A to point C
B
You might also like to view...
Subsidizing firms that pollute will reduce pollution in the long run.
Answer the following statement true (T) or false (F)
A number of firms who collude to make collective production decisions about quantities or prices is called:
A. a cartel. B. a duopoly. C. market power. D. a joint monopoly.
In addition to fiscal policy, the other main tool used to affect aggregate demand is
a. trade policy. b. industrial policy. c. planning policy. d. monetary policy.
Refer to Figure 31.3 for a competitive labor market. A shift in labor supply from S1 to S2 could be caused by:
A. An increase in the price of machinery used in the production of the product. B. An increase in the price of the product being produced. C. An increase in the wage rate. D. The unionization of another, separate labor market.