Refer to Figure 9.1. Assume the economy is initially at point A. The eventual change from a shock that increases investment expenditure is best represented by which long-run equilibrium combination of price level and real GDP?
A) P2; Y2
B) P3; Y1
C) P1; Y2
D) P2; Y1
Question 2
The American Recovery and Reinvestment Act of 2009 ________.
A) was a result of the Obama administration adopting an activist approach to policymaking
B) is still being debated after the fact in terms of its effectiveness
C) was supported by some economists, and opposed by as many economists
D) all of the above
E) none of the above
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