According to the above figure, a shortage is shown between which two points?

A) A and E
B) C and B
C) A and B
D) E and F


D

Economics

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According to the permanent income hypothesis, when income rises above the permanent income level, the household saves at a lower rate than the long-run MPS

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is not a result we would expect to result from a tariff on leather shoes? a. The price of leather shoes in the U.S. would increase

b. The amount of shoes imported into the U.S. would decline. c. Fewer pairs of shoes would be sold in the U.S. d. Domestic producers would sell fewer shoes at the higher prices.

Economics

Which one of the following is not a position taken by Keynesian economists? a. Because people anticipate the consequences of government policy, the policy becomes ineffectual

b. Changes in demand for goods affect production levels. c. To reduce unemployment, government should increase aggregate demand. d. Prices are inflexible downward. e. The economy can be in equilibrium with persisting unemployment.

Economics

Who do we not include in the “civilian labor force” for our unemployment calculation?

Economics