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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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