In the given figure, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then there is initially ________ gap and the short-run aggregate supply curve will ________.
A. a recessionary; eventually shift to SRAS"
B. a recessionary; eventually shift to SRAS'
C. an expansionary; eventually shift to SRAS'
D. an expansionary; eventually shift to SRAS"
Answer: C
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Suppose the demand curve is Y = 38 - 3?, and the current values for output and the real interest rate are 29 and 7 percent, respectively. A decrease in inflation leads to a new output level of 32 and real interest rate at 6 percent
The monetary policy curve is ________. Fill in the blank(s) with correct word
Which of the following is exempt from antitrust laws?
A) professional basketball B) suppliers of military equipment C) telephone companies D) automobile companies
Which expression is used to calculate the present value of an amount of money?
A. Future Value x (1 + interest rate)time B. Future Value/(1 + interest rate)time C. Future Value x (1 + time)interest rate D. (1 + interest rate)time/Future Value
Refer to Table 5.1. Hector should specialize in the production of
A) bracelets. B) tiaras. C) both products. D) neither product.