Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the monetarists, a recession can be caused when
A. AS1 shifts to the left.
B. AD1 shifts to the left.
C. LRAS shifts to the left.
D. AD1 shifts to the right.
Answer: B
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When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic, a. buyers of the good will incur most of the burden of the tax
b. sellers of the good will incur most of the burden of the tax. c. buyers and sellers will each incur 50 percent of the burden of the tax. d. the equilibrium quantity will increase.
As a general rule, what impact does technological progress have on a PPC?
What will be an ideal response?
When a Nash equilibrium is reached:
A. no one has an incentive to break the equilibrium by changing his strategy. B. the outcome will only change if the "lead" player changes his strategy. C. it must be true that all players have a dominant strategy. D. None of these statements is true.
Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X ? M = ?$500; depreciation = $200; transfer payments = $800, net domestic product is _____.
a. $5,500
b. $5,700
c. $6,200
d. $6,400
e. $6,900