In the figure above, the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the ________ curve shifts ________
A) aggregate supply; leftward
B) aggregate supply; rightward
C) aggregate demand; rightward
D) aggregate demand; leftward
E) potential GDP; leftward
B
Economics
You might also like to view...
A best practices frontier can be used to describe short and long term strategies
Indicate whether the statement is true or false
Economics
Suppose the demand curve and the supply curve in a market are both linear. To begin, there was a $5 tax per unit, and the $5 tax resulted in a deadweight loss of $1,500 . Now, the tax per unit is higher, with the higher tax resulting in a deadweight loss of $6,000 . What is the amount of the new tax per unit?
Economics