Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium
Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) D to C. B) C to B. C) A to E. D) B to A. E) E to A.
B
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Which of the following best describes comparative advantage?
A) using the fewest number of resources to produce a given amount of output B) being able to produce more output than any other country C) having the largest number of resources compared to other countries D) forgoing the fewest units of one product to produce a unit of another product E) It is the same as absolute advantage.
A mutual fund company uses the funds of its investors to:
A. Produce goods and services for consumers B. Buy stocks and bonds C. Build factories and other infrastructure D. Buy capital and other resources for other firms