This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If strong aggregate demand is pushing the economy beyond potential real GDP, which of the following ... (Read 72 times)

Caiter2013

  • Hero Member
  • *****
  • Posts: 607
on: Jun 29, 2018
If strong aggregate demand is pushing the economy beyond potential real GDP, which of the following must be true?
 
  A) Expansionary monetary policies will push the economy back to the long-run Phillips curve.
  B) The economy is at an equilibrium that is not on the long-run Phillips curve.
  C) The economy is at an equilibrium that is on the long-run aggregate supply curve.
  D) The economy is at an equilibrium that is on the long-run Phillips curve.

Question 2

Refer to Figure 23-2. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N,
 
  A) firms are operating below capacity.
  B) the economy is in an expansion.
  C) the level of unemployment is above the natural rate.
  D) the economy is at full employment.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

blfontai

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


Caiter2013

  • Member
  • Posts: 607
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
A farm family in Custer, Nebraska, in 1888, a region where Populist sentiment was strong. A farm family in Custer, Nebraska, in 1888, a region where Populist sentiment was strong.
Nonverbal communications convey strong, powerful messages that may be negative or positive. Nonverbal communications convey strong, powerful messages that may be negative or positive.
What is real and what is an illusion? What is real and what is an illusion?
The answer to “What is the proper role of children in an economy?” varies by social class, ... The answer to “What is the proper role of children in an economy?” varies by social class, ...
Street Drugs and Their Potential Effects During Pregnancy Street Drugs and Their Potential Effects During Pregnancy
Video: Hyperglycemia Animation

For a complete list of videos, visit our video library