Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and Congress and the president lower taxes to move the economy back to long-run equilibrium. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to B.
B) C to B.
C) A to E.
D) B to A.
E) B to C.
A
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Refer to the scenario above. Thomas's arc elasticity of demand for wine is:
A) -0.33. B) -0.67. C) -0.25. D) -1.
A negative income tax program provides a simple way to assist the unemployed
a. True b. False Indicate whether the statement is true or false
Graphs are useful because of the way they: a. facilitate interpretation and analysis of data
b. clarify interpretation and analysis of ideas. c. permit a person to more easily see relationships. d. do all of the above.
An active monetary policy that attempts to smooth out the business cycle would involve conducting ________ monetary policy during recessions and ________ monetary policy during expansions.
Fill in the blank(s) with the appropriate word(s).