In the long run ________

A) the amount of output an economy can produce is determined by real variables like capital, labor and technological advances
B) aggregate supply is fixed at the potential level of output
C) there is enough time for prices to fully adjust so the classical dichotomy holds
D) all of the above
E) none of the above


D

Economics

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A Nash equilibrium

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Refer to Figure 27-1. An increase in taxes would be depicted as a movement from ________, using the static AD-AS model in the figure above

A) A to B B) E to B C) B to C D) C to D E) B to A

Economics

Refer to Figure 16.1. If a firm expects that consumer preference for its product will increase in the future, this is best represented by a movement from

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Economics

By referring to Figure 7-1, an increase in the money stock

a. shifts the LM schedule to the right from LM0 to LM1. b. shifts the LM schedule to the left from LM0 to LM2. c. leaves the LM curve unchanged at LM0. d. shifts neither the IS nor the LM schedule.

Economics