In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD1 to AD2, then
A) the new short-run equilibrium will be at point B.
B) the new short-run equilibrium will be at point D.
C) the new long-run equilibrium will be at point B.
D) real Gross Domestic Product (GDP) per year will fall below Y1.
A
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The Financial Services Modernization Act
A) effectively repealed the Glass-Steagall Act of 1933. B) increased restrictions on cross-ownership of different types of financial institutions. C) allowed mergers between commercial banks and investment banks, but not between commercial banks and insurance companies. D) All of the above.
The resource market is important from a macroeconomic perspective because
a. it coordinates the allocation of productive resources and determines the costs of production. b. it determines the interest rates faced by borrowers and lenders. c. inflation rates are set in the resource market by the government. d. resource prices determine the position of the long-run aggregate supply curve.