« previous next »

Author Question: Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point ... (Read 172 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
on: Jun 29, 2018
Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
 
  A) expansionary automatic stabilizers.
  B) contractionary monetary policy.
  C) contractionary fiscal policy.
  D) expansionary monetary policy.
  E) expansionary fiscal policy.

Question 2

Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
 
  A) the economy is below full employment.
  B) firms are operating at below capacity.
  C) there is pressure on wages and prices to fall.
  D) income and profits are falling.
  E) the unemployment rate is very low.


jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Hyperopia (farsightedness). In the uncorrected top figure, the image would come into focus behind th Hyperopia (farsightedness). In the uncorrected top figure, the image would come into focus behind th
Bronchi Model Bronchi Model
Health Belief Model Health Belief Model
The Bohr model of the atom. The nucleus contains protons and neutrons, and electrons orbit around ... The Bohr model of the atom. The nucleus contains protons and neutrons, and electrons orbit around ...
Human Figure Human Figure
A genetic map showing the location of revertible (point) mutants of the rll region A genetic map showing the location of revertible (point) mutants of the rll region
Video: Summary of glucose catabolism

For a complete list of videos, visit our video library