Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising
Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from
A) A to E. B) B to C. C) C to D. D) C to B. E) A to B.
D
Economics
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According to Keynes, money wages
a. would adjust in the short run in order to maintain full-employment. b. are inflexible in the short run are cannot guarantee full-employment levels of output. c. are inflexible and fall as the price level rises. d. are more flexible downward than upward direction.
Economics
After employing her last laborer, Rachel notices that her Average Product has decreased. True or False: Her marginal cost is greater than her average variable cost
Indicate whether the statement is true or false
Economics