Figure 10-16
With the passage of time, which of the following will help direct this economy in toward its potential long-run rate of output?
a.
lower interest rates that will stimulate AD and lower resource prices that will increase SRAS
b.
higher interest rates that will reduce aggregate demand and higher resource prices that will reduce SRAS
c.
lower interest rates and higher resource prices, both of which will stimulate aggregate demand
d.
higher interest rates that will reduce SRAS and lower resource prices that will stimulate aggregate demand
a
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According to economic theory, a politician
A) expands activities whose marginal benefit exceeds marginal cost. B) contracts activities whose marginal cost exceeds marginal benefit. C) does not necessarily act on narrow or selfish interests. D) does all of the above. E) does none of the above.
The conditions for unaligned retailer and manufacturer incentives include
a. customers are familiar with the product before they shop for it b. retailers have no opportunity to educate consumers c. manufacturers are more efficient at education consumers d. demand for the product is increased with some consumer education
Most recessions and depressions
a. are accurately forecasted. b. usually occur with ample advance warning. c. cause falling unemployment. d. occur with little advance warning.
The supply curve will shift to the left when
A. some producers leave the industry. B. the product becomes fashionable. C. the demand for the product decreases. D. the supply of the product increases.