Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary
Answer: D
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The graph below represents the market for alfalfa. The market price is $7.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and economic surplus
What will be an ideal response?
Suppose that the forward rate of Mexican pesos per dollar is selling flat, with both the spot and forward rates trading at 15 pesos per dollar
If the relevant interest rates for a foreign exchange speculator are 3 percent on dollars and 13 percent in pesos, a potential arbitrage operation would involve A) selling pesos in the forward market. B) buying pesos in the forward market. C) borrowing pesos now. D) All of the above.
The demand curve for a monopolistic competitor is likely to be flatter than that of a monopolist.
Answer the following statement true (T) or false (F)
Disinflation took place in all of these periods except
A. the early 1950s. B. the mid-1970s. C. the early 1980s. D. the late 1980s.