In Exhibit 16-3, if the economy started near point b, and government purchases increased, we would expect the economy in the short run to move to (objective E5)
point a
point e
point c
point d
none of the above; the economy would remain at point b
If the government wants the economy illustrated in Exhibit 12-2 to be at full employment, it should (objective E1)
increase taxes
decrease transfer payments
decrease governḿent purchases
wait for the SRAS curve to shift to the left
do none of the above
Exhibit 11-3
Consider Exhibit 11-3. In this situation, long-run equilibrium would be established by a(n) (objective C3)
increase of short-run aggregate supply to close the expansionary gap
decrease of short-run aggregate supply to close the expansionary gap
decrease of short-run aggregate supply to close the contractionary gap
increase of short-run aggregate supply to close the contractionary gap
rightward shift of the aggregate demand curve
Figure 2-3 shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. The opportunity cost of moving from point B to C is
(objective A2)
20 cassettes
120 compact disks
100 cassettes
60 compact disks
180 compact disks