Refer to the information provided in Figure 27.2 below to answer the question(s) that follow.
Figure 27.2Refer to Figure 27.2. The output multiplier is smallest when the aggregate demand curve shifts from
A. AD1 to AD2.
B. AD3 to AD4.
C. AD5 to AD6.
D. The output multiplier is the same for all AD curve shifts shown in the figure.
Answer: C
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The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Unplanned inventory changes are zero when real GDP equals
A) $300 billion. B) $500 billion. C) $900 billion. D) $700 billion. E) $800 billion.
Which of the following program(s) is (are) in-kind assistance to fight poverty in the United States?
a. b and e. b. Medicaid. c. Unemployment benefits. d. Temporary Assistance to Needy Families (TANF). e. SNAP (food stamps).
The expected effects of an increased budget deficit are
A. higher real interest rates. B. exchange rate depreciation. C. lower inflation. D. All of these responses are correct.
Monopolistically competitive markets differ from perfectly competitive markets due to (i) the number of sellers. (ii) the barriers to entry. (iii) the product differentiation among the sellers
a. (i) only b. (iii) only c. (i) and (iii) only d. (ii) and (iii) only