Refer to the above diagram. A shift from AS1 to AS2 would be consistent with what economic event in U.S. history?
A. Demand-pull inflation in the late 1960s.
B. Full-employment in the late 1990s.
C. Cost-push inflation in the mid-1970s.
D. Recession in 2001.
Answer: C
You might also like to view...
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
In 2010, of the following which nations had the highest level of real GDP per person?
A) Japan B) Europe Big 4 C) Canada D) China
In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is
A) 5/3 of a pair of pants per shirt. B) 3/5 of a pair of pants per shirt. C) 5 pairs of pants per shirt. D) 2 pairs of pants per shirt.
Adding up all of the consumer and producer surpluses determines ______.
a. minimum alternative tax b. total welfare gains c. maximum deadweight loss d. optimal subsidy levels