?Exhibit 10A-2 Macro AD-AS Model

?In Exhibit 10A- 2, the intersection of AD with SRAS indicates:   

A. ?a short-run equilibrium.
B. ?a long-run equilibrium.
C. ?that the economy needs policies to reduce unemployment.
D. ?that the economy is at full employment.


Answer: A

Economics

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A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward

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In general, during the business cycle, when economic activity is peaking:

a. interest rates begin to creep higher b. unemployment levels are low c. inflation begins to edge higher d. all of the above

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Short-run supply curves for perfectly competitive firms tend to be upward sloping because:

A) there is diminishing marginal product for one or more variable inputs. B) marginal costs increase as output increases. C) marginal fixed costs equal zero. D) A and B are correct. E) B and C are correct.

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In Adam Smith's competitive market economy, the question of what goods to produce is determined by the:

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Economics