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Author Question: Refer to Figure 12-2.Suppose that the level of GDP associated with pointKis potential ... (Read 97 times)

tsand2

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Question 1

Figure 12-2











Refer to Figure 12-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?


◦ The price level in the United States falls relative to the price level in other countries.
◦ Congress abolishes investment tax incentives.
◦ The interest rate rises.
◦ Household wealth declines.

Question 2

Figure 12-2











Refer to Figure 12-2. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N,


◦ firms are operating below capacity.
◦ the economy is at full employment.
◦ the economy is in an expansion.
◦ the level of unemployment is above the natural rate.


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Marked as best answer by tsand2 on Mar 16, 2019

courtney_bruh

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tsand2

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Reply 2 on: Mar 16, 2019
Great answer, keep it coming :)


olderstudent

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Reply 3 on: Yesterday
Wow, this really help

 

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