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Author Question: The more the short-run output exceeds an economy's potential, _____. a. the smaller the ... (Read 58 times)

ahriuashd

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  • Posts: 535
on: Jun 30, 2018
The more the short-run output exceeds an economy's potential, _____.
 a. the smaller the expansionary gap
 b. the greater the upward pressure on the price level
 c. the larger the recessionary gap
 d. the greater the downward pressure on the price level
  e. the lesser the demand for resources

Question 2

All other things constant, when the interest rate increases:
 a. the demand for investment curve shifts to the right.
 b. the demand for investment curve shifts to the left.
 c. there is a movement downward along the demand for investment curve.
  d. there is a movement upward along the demand for investment curve.
  e. GDP increases.


mrphibs

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

d


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