Multiple Choice
A vertical line showing an economy's potential output is called the ________, while a horizontal line showing the current rate of inflation is called the ________.
A) long-run aggregate supply; short-run aggregate supply
B) short-run aggregate supply; long-run aggregate supply
C) long-run aggregate supply; aggregate demand
D) short-run aggregate supply; aggregate demand
Correct Answer:
Verified
Correct Answer:
Verified
Q42: A low rate of expected inflation tends
Q43: Graphically short-run equilibrium occurs at the intersection
Q44: Changes in the expected rate of inflation
Q45: Starting from long-run equilibrium, a decrease in
Q46: An economy with an expansionary gap will,
Q48: Refer to the accompanying figure. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"
Q49: Based on the given figure, the economy
Q50: A large increase in oil prices is
Q51: Refer to the accompanying figure. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"
Q52: When there is an expansionary gap, inflation