In the figure above, assume that output is $10.5 trillion, while potential output is $12 trillion. Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS and AD curves, as shown in the figure
The equilibrium real interest rate is ________ percent. A) 3
B) one
C) 2.5
D) 2
E) zero
C
Economics
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Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs solely comes from increased prices for MRI and X-ray machines, then for the health care industry
A) fixed costs are increasing. B) long run average total cost is decreasing. C) productivity is increasing. D) variable costs are increasing.
Economics
If Year 1 is the base year, the real GDP of Year 2 is
A) $800. B) $1050. C) $1900. D) $2400.
Economics