Multiple Choice
Starting with AD₁ and AS1 in the graph below, if resources become more productive:
Graph 14-2
A) equilibrium in the economy moves from point c to point b
B) equilibrium in the economy moves from point b to point c
C) equilibrium in the economy moves from point c to point d
D) equilibrium in the economy moves from point d to point c
E) equilibrium in the economy moves from point c to point a
Correct Answer:

Verified
Correct Answer:
Verified
Q63: We can use the aggregate demand and
Q64: The long run aggregate supply curve is
Q65: If resources become more productive:<br>A)neither the short-run
Q66: An increase in inflation shifts the AD
Q67: The behaviour by the Reserve Bank is
Q69: Another reason for the downward slope of
Q70: The aggregate supply curve shows the relationship
Q71: The classical dichotomy refers to the separation
Q72: In the long-run persistent increases in aggregate
Q73: Economic growth is:<br>A)bad for the economy as