Author Question: Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is ... (Read 108 times)

chads108 · **on:** Jun 29, 2018

Refer to Figure 26-12. 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

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

Question 2

The balance of payments includes all of the following accounts except

A) the national debt account. B) the financial account.
C) the capital account. D) the current account.