Point B represents a short-run equilibrium but not a long-run equilibrium. a sho

Question

Point B represents a short-run equilibrium but not a long-run equilibrium. a short-run equilibrium and a long-run equilibrium. a long-run equilibrium but not a short-run equilibrium. neither a short-run equilibrium nor a long-run equilibrium. Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. Which curve shifts and in which direction? aggregate demand shifts left aggregate demand shifts right aggregate supply shifts right. aggregate supply shifts left. Monetary policy a. cannot be accurately described terms of the interest rate or in terms of the money supply. must be described in terms of money-supply targets. must be described in terms of interest-rate targets. can be described either in terms of the money supply or in terms of the interest-rate.

Explanation / Answer

10. Point B represents:

a. a short-run equilibrium but not a long-run equilibrium.

11. Refer to Pessimism: Which curve shifts and in which direction?

a. aggregate demand curve shifts left.

12. Monetary policy:

b. must be described in terms of money-supply targets.

*****

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.