Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising
If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above.
A) D to C B) A to E C) C to B D) B to A E) E to A
C
Economics
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One way of reducing the moral hazard problem in the automobile insurance market is for drivers to
A) carry high deductibles. B) carry no deductibles. C) all have good driving records. D) never make any claims.
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According to the MABP, BOP disequilibria
A) must be transitory. B) are essentially real phenomena. C) must be permanent. D) are not important.
Economics