Author Question: Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused ... (Read 63 times)

mp14

  • Hero Member
  • *****
  • Posts: 534
Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused by a(n)
 
  A) decrease in government spending. B) decrease in the price level.
  C) decrease in taxes. D) increase in the money supply.

Question 2

In the above figure, starting at E1, if there is a supply shock that is temporary, the
 
  A) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1.
  B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1.
  C) aggregate supply would shift to SRAS1 and then return to SRAS0.
  D) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0.


jrpg123456

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

For a complete list of videos, visit our video library