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Author Question: In the above figure, if the economy is in equilibrium at E1, then A) the economy is producing ... (Read 157 times)

Jkov05

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on: Jun 29, 2018
In the above figure, if the economy is in equilibrium at E1, then
 
  A) the economy is producing below its potential long-run equilibrium at full employment.
  B) the economy is producing above its potential long-run equilibrium at full employment.
  C) there is an inflationary gap in the economy.
  D) the economy is in a period of high inflation.

Question 2

If you invest in a foreign company by buying 28 percent of its shares of stock, you have engaged in
 
  A) portfolio investment.
  B) moral hazard.
  C) foreign direct investment.
  D) adverse selection.


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elizabethrperez

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

C


Jkov05

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

kilada

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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