Figure 10-16
With the passage of time, which of the following will help direct this economy in toward its potential long-run rate of output?
a.
lower interest rates that will stimulate AD and lower resource prices that will increase SRAS
b.
higher interest rates that will reduce aggregate demand and higher resource prices that will reduce SRAS
c.
lower interest rates and higher resource prices, both of which will stimulate aggregate demand
d.
higher interest rates that will reduce SRAS and lower resource prices that will stimulate aggregate demand
a
You might also like to view...
George Gnat subscribes to a monthly pest control service for his home
Last week the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their service trips. How is the market for pest control services affected by this? A) There is a decrease in the demand for pest control services. B) There is a decrease in the supply of pest control services. C) There is a decrease in the quantity of pest control services supplied. D) There is an increase in the supply of pest control services.
Unless there are barriers to prevent free international trade, a country becomes an importer when the world price exceeds the domestic price. In contrast, a country becomes an exporter when the world price is less than the domestic price
Indicate whether the statement is true or false