Bottlenecks will occur when:
A) The output gap is large and the aggregate supply curve is horizontal.
B) The output gap is small and the aggregate supply curve is vertical.
C) The output gap is small and the aggregate supply curve is horizontal.
D) The output gap is large and there is a decrease in aggregate demand.
Correct Answer:
Verified
Q12: When the output gap is large then
Q13: Refer to diagram 2. Shifting the aggregate
Q14: Shifting the aggregate demand curve to the
Q15: The trade-off between an increase in both
Q16: Higher tax rates reduce the opportunity cost
Q18: Supply-side policies became a focus of many
Q19: Supply-side policies focus on policies that
A) Shift
Q20: Market orientated supply policies aim to improve
Q21: Policy makers who believe in the Laffer
Q22: Raising the tax threshold serves to
A) Increase
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