Refer to the diagram, in which Qf is the full-employment output. The shift of the aggregate demand curve from AD3 to AD2 is consistent with
A. an expansionary fiscal policy.
B. a major recession.
C. a contractionary fiscal policy.
D. demand-pull inflation.
Answer: C. a contractionary fiscal policy.
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The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Suppose a free market exists
If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by A) 10 units. B) 20 units. C) 30 units. D) 40 units.
The substantial fluctuations in velocity make the equation of exchange more useful in predicting changes in nominal GDP
a. True b. False Indicate whether the statement is true or false
A country's potential GDP is determined, in part, by
A) the Lucas Wedge. B) the Okun Ga
An effective policy of governmental intervention in the economy requires all of the following except one. Which is the exception?
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