Refer to Figure 28-9. A(n) ________ would be depicted as a ...

[Garrulous]

Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C.
 
  A) supply shock, such as rising oil prices,
  B) implementation of contractionary monetary policy
  C) increase in short-run aggregate supply
  D) increase in aggregate demand

Question 2

Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that a contractionary monetary policy to lower inflation after a supply shock, like that pursued by Volcker in 1979, would result in a movement from
 
  A) C to D to A. B) A to B. C) C to A. D) A to C. E) A to D to C.

[kswal303]

Answer to Question 1

A

Answer to Question 2

C

[Garrulous]

TYSM

[EAN94]

Excellent