In the above figure, the inflationary gap when AD2 is the aggregate demand curve equals
A) the difference between 110 and 100.
B) the difference between $16.5 trillion and $16.0 trillion.
C) LAS minus SAS at a price level of 100.
D) AD1.
B
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Price ceilings frequently lead to
A. an accumulation of surpluses. B. an increase in the number of units purchased, moving along the demand curve. C. increased production, since producers respond to increased consumer demand at the low ceiling price. D. result in the development of black markets.
The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It moved the economy up along a stationary short-run aggregate supply curve. B) It shifted the short-run aggregate supply curve to the left. C) It moved the economy down along a stationary short-run aggregate supply curve. D) It shifted the short-run aggregate supply curve to the right.
Which of the following was the chief source of federal revenues throughout most of the nineteenth century?
a. Income taxes b. Property taxes c. Tariffs d. Inheritance taxes
In 2015, Exxon Mobil, the world's largest oil company, spent $31 billion on
A. exploration and capital investment. B. defending itself against class-action lawsuits. C. executive compensation. D. payments to people affected by oil spills.