Author Question: If demand pull inflation occurs when the economy is already at potential GDP, then following the ... (Read 33 times)

renzo156

  • Hero Member
  • *****
  • Posts: 526
If demand pull inflation occurs when the economy is already at potential GDP, then following the initial increase in aggregate demand, the
 
  A) AS curve shifts rightward.
  B) potential GDP line shifts rightward.
  C) AS curve shifts leftward.
  D) potential GDP line shifts leftward.
  E) None of the above is correct because demand-pull inflation shifts only the aggregate demand curve.

Question 2

A technological change ________ and a change in the capital stock ________.
 
  A) shifts the productivity curve; shifts the productivity curve
  B) shifts the productivity curve; creates a movement along the productivity curve
  C) creates a movement along the productivity curve; shifts the productivity curve
  D) does not change the productivity curve; creates a movement along the productivity curve
  E) does not change the productivity curve; shifts the productivity curve



Viet Thy

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

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?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

For a complete list of videos, visit our video library