Author Question: Refer to Figure 15-8.In the figure above, if the economy is at pointA, the appropriate ... (Read 62 times)

SO00 · **on:** Mar 16, 2019

Question 1

Figure 15-7

Refer to Figure 15-7. Suppose the economy is in a recession and no policy is pursued. Using the static AD-AS model in the figure above, this situation would be depicted as a movement from

◦ A to B.
◦ B to A.
◦ C to B.
◦ A to E.
◦ C to D.

Question 2

Figure 15-8

Refer to Figure 15-8. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to

◦ lower interest rates.
◦ raise interest rates.
◦ lower income taxes.
◦ raise income taxes.

zacnyjessica · **Reply #1 on:** Mar 16, 2019

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