A temporary supply shock, such as a bumper crop, would
A) shift the FE line to the right and leave the IS curve unchanged.
B) shift the FE line to the left and shift the IS curve up and to the right.
C) shift the FE line to the left and leave the IS curve unchanged.
D) have no effect on the FE line.
A
Economics
You might also like to view...
Typically, countries with high growth rates of per-capita GDP have
a. lower infant mortality rates b. higher life expectancies c. higher adult literacy d. all of the above e. higher unemployment rates.
Economics
If two variables are completely unrelated to each other, then graphing these two variables will yield a line that is:
A. Always vertical B. Always horizontal C. Not a line, but only a single point D. Either vertical or horizontal
Economics