Suppose that the price of an ounce of gold is 120 pesos in Mexico and 2,400 yen in Japan. Then the Japanese yen is worth two hundred times the value of a Mexican peso

A below-full-employment equilibrium

A) is not possible in the U.S. economy. B) occurs when real GDP is less than potential GDP. C) occurs when the price level is rising very quickly. D) occurs when real GDP exceeds potential GDP.

A decrease in the price level causes a ________ the IS curve and a ________ the aggregate demand curve

A) movement up along; movement up along B) shift to the right of; movement up along C) movement down along; movement down along D) shift to the left of; movement down along