Refer to the graph below. Assume that the economy is initially in equilibrium at the intersection of AD1 and AS1. Suppose that there is economic growth which shifts AS1 to AS2. Mainstream economists would suggest that the application of a monetary rule to keep prices constant might produce demand-pull inflation because the investment spending might:
A. Increase and cause the aggregate demand curve to shift from AD1 to AD4
B. Decrease and cause the investment demand curve to shift from AD1 to AD4
C. Increase and cause the aggregate demand curve to shift from AD1 to AD2
D. Decrease and cause the investment demand curve to shift from AD1 to AD2
A. Increase and cause the aggregate demand curve to shift from AD1 to AD4
Economics
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Refer to Figure 3-5. At a price of $5,
A) there is a scarcity of 4 units. B) there is a surplus of 4 units. C) there is a shortage of 4 units. D) there is a shortage of 6 units.
Economics
In the short run, changes in output can only be brought about by a change in the quantity of variable inputs
Indicate whether the statement is true or false
Economics