Economics 12E - Arnold - TB_351 - a point B b point E c somewhere on the line between point D and point B d somewhere on the line between point E and

Economics 12E - Arnold - TB_351 - a point B b point E c...

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a. point B. b. point E. c. somewhere on the line between point D and point B. d. somewhere on the line between point E and point B. ANSWER: c POINTS: 1 DIFFICULTY: Challenging NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Understanding and applying - DISC: Understanding and applying economic models KEYWORDS: Bloom's: Application 27. Refer to Exhibit 16-2. Suppose the economy starts at point B. Fed monetary policy shifts the AD curve to AD1. If policy is correctly anticipated and people hold rational expectations, according to new classical theory the economy in the short run will a. move to A.b. stay at B.c. move to F.d. move to E.ANSWER: a POINTS: 1 DIFFICULTY: Challenging NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Understanding and applying - DISC: Understanding and applying economic models KEYWORDS: Bloom's: Application 28. Refer to Exhibit 16-2. Suppose the economy starts at point B. Fed monetary policy shifts the AD curve to AD1. A recession is likely if the economy operates under __________ assumptions, which include wage and price __________. POINTS: 1 DIFFICULTY: Challenging
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NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Understanding and applying - DISC: Understanding and applying economic models KEYWORDS: Bloom's: Application
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