The figures above represent different markets. The labels and the direction of shift of the curves...
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The figures above represent different markets. The labels and the direction of shift of the curves are intentionally omitted. You need to determine which market each figure represents according to the information available to you in the figure. The possibilities are: the the final goods and services market, the money market, the bond market, the currency market. A market may be represented by more than one figures where each shows the change in the market due to a different event. Before you attempt to answer the question, you might want to take a few seconds to look at each figure and determine the market it represents and the possible changes it depicts. Suppose that the economy is currently at its long run equilibrium. Now the Fed lowers the required reserve ratio for all commercial banks in the economy effective immediately. As a result of the above event, in the short run, which point corresponds to the level of real GDP in the economy? (Your answer should be one upper case letter among those in the above figures.) The figures above represent different markets. The labels and the direction of shift of the curves are intentionally omitted. You need to determine which market each figure represents according to the information available to you in the figure. The possibilities are: the the final goods and services market, the money market, the bond market, the currency market. A market may be represented by more than one figures where each shows the change in the market due to a different event. Before you attempt to answer the question, you might want to take a few seconds to look at each figure and determine the market it represents and the possible changes it depicts. Suppose that the economy is currently at its long run equilibrium. Now the Fed lowers the required reserve ratio for all commercial banks in the economy effective immediately. As a result of the above event, in the short run, which point corresponds to the level of real GDP in the economy? (Your answer should be one upper case letter among those in the above figures.)
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