A decrease (shift to the left) in aggregate supply can lead to
a. demand-pull deflation
b. demand-pull inflation
c. prosperity
d. cost-push inflation
e. cost-push deflation
D
You might also like to view...
The table below gives the quantities and prices for 2000 and 2010 for an economy that produces just two goods: sailboats and coconuts. Quantity producedPrice 2000201020002010Sailboats1020$500$525Coconuts2,0002,400$1$2For this economy that produces just sailboats and coconuts, and with 2000 is the base year, real GDP was approximately ______ times larger in 2010 than it was in 2000.
A. 1.34 B. 1.77 C. 1.65 D. 2.19
Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a tri
Indicate whether the statement is true or false
Which one of the following was a basic economic conflict between the North and the South in the years preceding the Civil War?
A. The North opposed the high protective tariffs the South supported to protect its manufactured goods. B. The South opposed the high protective tariffs the North supported to protect its manufactured goods. C. The North demanded the abolition of slavery. D. The North opposed the building of a transcontinental railroad.
How has the pattern of movements in the U.S. price level changed since World War II?
A. The annual rate of inflation has never risen above 3 percent. B. The price level has become more volatile. C. Periods of deflation have largely been eliminated. D. Periods of inflation have largely been eliminated.