Exhibit 14A-6 Aggregate demand and supply model
?
Beginning from a point of short-run equilibrium at point E2 in Exhibit 14A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:
A. a movement along the AD2 curve caused by a shift in the SRAS1 curve to SRAS2.
B. a movement along the SRAS1 curve with a shift in theaggregate demandcurve.
C. a shift in the LRAS curve to an intersection at E3.
D. no shift of any kind.
Answer: B
You might also like to view...
To measure the amount of tax money collected by the government, one uses the vertical distance between points
The accompanying diagram shows the effect of levying an income tax on the consumer. The pre-tax optimum is at point A, and the post-tax optimum is at point B.
a. A and B.
b. A and D.
c. B and C.
d. B and D.
U.S. factories produce ________ of the shoes New Balance sells in the United States
A) none B) about 25 percent C) roughly half D) about 75 percent
Land, labor, and capital are examples of factors of production
a. True b. False Indicate whether the statement is true or false
Which one of the following would count as investment in the national income accounts?
What will be an ideal response?