Using Figure 14P-1, answer the following questions. a. Is this economy in recession, just right, or overheating? 11eb6f55_2a26_051d_97e4_c975c4f69685_SM2804_00 b. What is the correct monetary policy in this situation-expansionary or contractionary? c. What is the effect on prices of that policy- will they increase or decrease?

Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

النسخة 1الرقم المعياري الدولي: 978-0077332648

Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

النسخة 1الرقم المعياري الدولي: 978-0077332648

تمرين 4

Using Figure 14P-1, answer the following questions.
a. Is this economy in recession, just right, or overheating?

b. What is the correct monetary policy in this situation-expansionary or contractionary?
c. What is the effect on prices of that policy- will they increase or decrease?

التوضيح

موثّق

Diagram:
Figure -1 illustrates the equil...