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The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Suppose that AD and ASp represent the initial aggregate demand and aggregate supply in the economy. Figure 18 Refer to Figure 18. Movement of equilibrium from point D to point B could be initiated by: A) a stock market crash that undermines consumer confidence. B) a tax code changes that negatively affect investor expectations. C) a sharp decrease in government spending. D) a higher net exports because of economic expansion in European countries. E) a technological advancement.

The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Suppose that AD and ASp represent the initial aggregate demand and aggregate supply in the economy. Figure 18 Refer to Figure 18. Movement of equilibrium from point D to point B could be initiated by: A) a stock market crash that undermines consumer confidence. B) a tax code changes that negatively affect investor expectations. C) a sharp decrease in government spending. D) a higher net exports because of economic expansion in European countries. E) a technological advancement.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 17RQ: Over the last century, during what periods was the U.S. inflation late highest and lowest?
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The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Suppose that AD and ASp represent the initial aggregate demand and aggregate supply in the economy. Figure 18 Refer to Figure 18. Movement of equilibrium from point D to point B could be initiated by: A) a stock market crash that undermines consumer confidence. B) a tax code changes that negatively affect investor expectations. C) a sharp decrease in government spending. D) a higher net exports because of economic expansion in European countries. E) a technological advancement.
Figure 18.png AS3 AS, AS2 B. AD AD AD2 100 200 300 400 500 Real GDP (billions of dollars) U.S. Price Level
Transcribed Image Text:Figure 18.png AS3 AS, AS2 B. AD AD AD2 100 200 300 400 500 Real GDP (billions of dollars) U.S. Price Level
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