Figure 18-2 
-Refer to Figure 18-2.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,and no fiscal or monetary policy is pursued,then at point B
A) the unemployment rate is very low.
B) firms are operating below capacity.
C) the economy is above full employment.
D) income and profits are rising.
E) there is pressure on wages and prices to rise.
Correct Answer:
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Q49: Figure 18-2 Q50: Figure 18-3 Q58: Figure 18-3 Q62: Which of the following is considered contractionary Q65: Expansionary fiscal policy involves increasing government purchases Q66: Contractionary fiscal policy to prevent real GDP Q75: Expansionary fiscal policy to prevent real GDP Q83: Does expansionary fiscal policy directly increase the Q91: What is expansionary fiscal policy? What is Q100: If real GDP exceeded potential real GDP Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
