Refer to Figure 9.1. Assume the economy is initially at point A. The initial change resulting from a recession caused by an increase in oil prices is best represented by which short-run equilibrium combination of price level and real GDP?

The process of a government intervening to maintain the value of their exchange rate after shock to their economy is known as

A) sterilization. B) preventative therapy. C) beggar-thy-neighbor policies. D) the liquidity effect.

If a firm can vary all of its factors of production, it is operating in

A) the long run. B) the immediate run. C) equilibrium. D) the short run.