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Author Question: Refer to Figure 15-12. In the dynamicAD-ASmodel, if the economy is at pointAin year 1 ... (Read 149 times)

leilurhhh

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Question 1

Figure 15-12









Refer to Figure 15-12.  In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely


◦ increase interest rates.
◦ decrease interest rates.
◦ not change interest rates.
◦ increase the inflation rate.

Question 2

Figure 15-12









Refer to Figure 15-12.  In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B


◦ firms are producing above capacity.
◦ there is pressure on wages and prices to fall.
◦ the unemployment rate is greater than the natural rate of unemployment.
◦ incomes and profits are falling.


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Marked as best answer by leilurhhh on Mar 16, 2019

kmb352

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