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Author Question: Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential ... (Read 147 times)

Yi-Chen

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Question 1

Figure 15-7









Refer to Figure 15-7.  Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from


A to B.
B to C.
C to B.
A to E.
C to D.

Question 2

Figure 15-7









Refer to Figure 15-7.  Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising. Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from


A to B.
B to C.
C to B.
A to E.
C to D.


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Marked as best answer by Yi-Chen on Mar 16, 2019

pocatato

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Yi-Chen

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Reply 2 on: Mar 16, 2019
:D TYSM


parker125

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Reply 3 on: Yesterday
Wow, this really help

 

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