Figure 9-2
When an economy is experiencing the aggregate demand and supply conditions depicted in ,
a.
the actual rate of unemployment will exceed the natural rate of unemployment.
b.
buyers and sellers will have correctly anticipated the level of prices P1.
c.
the output y1 will not be sustainable in the future.
d.
all of the above are correct.
b
Economics
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Refer to Figure 28-6. If firms and workers have rational expectations, an expansionary monetary policy will cause the short-run equilibrium to move from
A) point B to point A. B) point B to point C. C) point C to point A. D) point A to point B. E) point A to point C.
Economics
Merchandise exports minus imports equal the
A) basic balance. B) liquidity balance. C) official settlements balance. D) balance of trade.
Economics