Business, 23.04.2021 21:00 Woodlandgirl14

Suppose the economy begins in long run equilibrium. Then, suppose that fires in California destroy part of the capital stock. a. Which curve will shift and in which direction? A. AD will shift Right B. AD will shift Left C. SAS will shift Right D. SAS will shift Left b. What will happen to Y, P, and the unemployment rate? A. Y will decrease, P will decrease, and the unemployment rate will increase. B. Y will increase, P will decrease, and the unemployment rate will decrease. C. Y will increase, P will increase, and the unemployment rate will decrease. D. Y will decrease, P will increase, and the unemployment rate will increase. c. Is the new equilibrium above, below, or equal to full employment? A. Below full employment B. Above full employment C. Equal to full employment d. Is the unemployment rate above, below, or equal to the Natural Rate of Unemployment? A. Below NRU B. Equal to NRU C. Above NRU e. Is the economy experiencing any added inflation; and if so, is it cost-push or demand-pull inflation? A. Yes, demand-pull inflation. B. Yes, cost-push inflation. C. N/A the economy is not experiencing any added inflation. f. If Congress uses discretionary fiscal policy to correct the economy, which curve will shift and in which direction? A. SAS shifts Left B. AD shifts Right

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Suppose the economy begins in long run equilibrium. Then, suppose that fires in California destroy...

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