In economics, what is meant by investment?
What will be an ideal response?
Question 2
Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising.
Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from
A) A to E. B) B to C. C) C to D. D) C to B. E) A to B.