Author Question: On the graph above, suppose the economy is at point 6. Which sequence of points best illustrates the ... (Read 79 times)

DyllonKazuo · **on:** Jun 30, 2018

On the graph above, suppose the economy is at point 6. Which sequence of points best illustrates the short-run and then long-run impacts of an expansionary fiscal contraction?

A) 2, 7, 8
B) 4, 7, 1
C) 1, 4, 5
D) 1, 4, 2

Question 2

As shown in Figure 7-4, for income to be unchanged when there is an autonomous decline in investment, the interest rate would have to

a. rise to r0.
b. fall to r2.
c. remain constant at r1.
d. None of the above