Econ 111: Principles of Economics - Accelerated Treatment - Quiz 9
In recent weeks the US economy has been operating with an 7.2% unemployment rate and about 2% inflation. Consider the following changes and use a separate graph each time and a very brief explanation to show the effect of this policy (or change) on aggregate output and general price level in the US economy.
a) The consumer confidence is picking up and the economic situation in Europe is also stabilizing
b) The government (concerned with government deficit issues) decreases G.
c) Oil prices have been increasing and are expected to continue increasing in the near future.
d) A new type of fertilizer has greatly increased US agricultural production levels.