A short-run equilibrium occurs
A) at the intersection of the short-run aggregate supply curve and the aggregate demand curve.
B) at the real GDP associated with full employment.
C) at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve.
D) at the intersection of the long-run aggregate supply curve and the aggregate demand curve.
A
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The major cost of production in the economy is
A. interest expense. B. capital costs. C. rents. D. profits. E. wages.
The highest rate of U.S. growth was recorded in which of the following periods?
A) 1948-73 B) 1967-83 C) 1974-95 D) 1996-2008
Assume that a bank holds legal reserves of $800, the required reserves are $400 and total deposit is $4,000 . If the government purchases bonds worth $200, excess reserves will increase by _____
a. $420 b. $180 c. $100 d. $80 e. $40
Expenditure-reducing policies designed to improve a current account deficit
A) turn domestic spending towards domestic goods. B) reduce the overall level of demand in the economy. C) turn domestic spending towards foreign goods. D) increase the overall level of demand in the economy.