Micro Exam 2

Question 1

Dynamic Microeconomic Graph of Demand-Pull Inflation

Answer 1

Demand increases more than supply increases

Question 2

Dynamic Microeconomic Graph of a Goldilocks Economy

Answer 2

Demand and supply increase at the same rate, together

Question 3

Dynamic microeconomic graph of expanding lower prices

Answer 3

Supply increases more than demand increases

Question 4

Dynamic microeconomic graph of economy contracting with stable prices

Answer 4

Supply and demand decrease at the same rate, together

Question 5

Dynamic Microeconomic Graph of Cost-Push Inflation

Answer 5

Supply decreases more than demand decreases

Question 6

Dynamic microeconomic graph of recession

Answer 6

Demand decreases more than supply decreases