If the economy moves from A to B in the above figure, which of the following would be the appropriate fiscal policy to achieve potential GDP? O 3. Increase taxes 0 b, Increase government spending O c. Decrease interest rates O d. Increase cash rate Question 28 Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of Not yet the automatic mechanism adjusting the economy back to potential GDP? answered Marked out of O a. Output will increase 1.00 O b. Prices will decrease Flag question O c. Unemployment will decline. O d. Aggregate supply will shift to the left. Question 29 If a firm in a perfectly competitive industry experiences persistent losses, in the long run it should Not yet answered Marked out of a. shut down temporarily and wait for market conditions to change. 1.00 O b. raise its price to cover average total cost. Flag question O c. exist the industry. O d. continue to operate if it can raise the demand for its product through advertising and quality improvements. Question 30 Which of the following has a tendency to decrease the unemployment rate? Not yet answered O a. Implementing a minimum wage in an economy. Marked out of 1.00 O b. More firms make information on job opening easily available via online job sites. Flag question O c. The establishment of effective trade unions in an economy. O d. All of these options are correct.QUQSUO\" 27 Refer to the Figure below: Not yet answered An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium? Marked out of 100 Real Interest \\V F lag rate question 6% 0 30 60 90 120 150 180 Quantity of loanable funds (millions of dollars) 0 a. The real interest rate is 5 per cent, and the quantity of loanable funds is $150 million. O b. The real interest rate is 5 per cent, and the quantity of loanable funds is $90 million. 0 c. The real interest rate is 3 per cent, and the quantity of loanable funds is $150 million. Q d. The real interest rate is 3 per cent, and the quantity of loanable funds is $90 million. Question 26 Not yet answered Marked out of 'LOO \\V Flag question Refer to the figure below: Prloe level 0 Y1 Y2 Y3 Real GDP (bllllons of dollars) If the economy moves from A to B in the above figure, which of the following would be the appropriate fiscal policy to achieve potential GDP