For the following questions, use the diagram below:
Figure 34-7. 
-Refer to Figure 34-7. Which of the following is correct?
A) A wave of optimism could move the economy from point a to point b.
B) If aggregate demand moves from AD1 to AD2, the economy will stay at point b in both the short run and long run.
C) It is possible that either fiscal or monetary policy might have caused the shift from AD1 to AD2.
D) All of the above are correct.
Correct Answer:
Verified
Q21: Figure 34-9 Q22: For the following questions,use the diagram below: Q32: Critics of stabilization policy argue that Q37: Some economists argue that Q47: The lag problem associated with monetary policy Q48: Other things the same,during recessions taxes tend Q58: Which of the following is not an Q202: An example of an automatic stabilizer is Q203: Critics of stabilization policy argue that Q206: During recessions, taxes tend to
Figure
A)there is
A)monetary policy should actively
A)unemployment
A)policy affects
A)rise and thereby
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