If a demand shock causes an economy to operate at a point above potential GDP, then
a. the aggregate supply curve will shift to return the economy to the original point of equilibrium
b. the economy will correct itself through rising wages and prices
c. this short-run equilibrium point will become the new long-run equilibrium GDP
d. the economy will correct itself through falling wage rates and prices
e. the shock is said to be a negative demand shock
B
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Marginal cost is the _______________in variable costs that comes from using additional factors of production.
Fill in the blank(s) with the appropriate word(s).
Which of the following was not a criticism of the unconventional monetary policy used by the Fed in 2009 and 2010?
A. Tendency toward higher unemployment B. Tendency toward higher inflation C. Usurping authority which should be allocated to Congress D. Determining which banks would be allowed to fail