Consider the above figure. At a price level of 150 A) total ...

[s.tung]

Consider the above figure. At a price level of 150
 
  A) total planned production exceeds total planned real expenditures.
  B) total planned real expenditures exceed total planned real production.
  C) the price level would rise.
  D) inventories of unsold goods decline.

Question 2

Which of the following statements has been proposed as a benefit of passive policy making?
 
  A) When using passive policy making there is no tradeoff between price stability and unemployment.
  B) Passive policy making allows for making immediate changes in response to an anticipated change in economic performance.
  C) Passive policy making utilizes the rational expectations hypothesis.
  D) Passive policy making does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.

[rachel]

Answer to Question 1

A

Answer to Question 2

D

[s.tung]

Thank you

[rachel]

Happy to help you