Refer to Figure 11.2. Assume the economy is in equilibrium at 1, where real GDP equals potential GDP, and then the economy experiences a positive demand shock. Other things equal, the positive demand shock is best represented by a(n)
A) movement up along the Phillips curve.
B) movement down along the Phillips curve.
C) upward shift of the Phillips curve.
D) downward shift of the Phillips curve.
A
Economics
You might also like to view...
There are apartments in Chicago whose rooftops overlook Wrigley Field where the Chicago Cubs play at home. On game day you can find free riders on the roof enjoying _____________
a. a near public good b. free property rights c. a positive externality d. a pure public good e. excess utility
Economics
Which equation shows how a firm’s marginal cost can be determined by looking at changes in its variable cost?
a. ?MC/?VC b. ?q/?VC c. VC/?VC d. ?VC/?q
Economics