An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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If a polluting producer is forced to pay a pollution charge, what is the effect on the supply and demand curves for the product?
A) The quantity supplied along the firm's supply curve increases. B) The firm's demand curve shifts leftward. C) The firm's supply curve shifts rightward. D) The firm's supply curve shifts leftward. E) Both the supply curve and the demand curve shift leftward.
If a monopolist's marginal revenue is $25 a unit and its marginal cost is $25, then
A) to maximize profit the firm should decrease output. B) to maximize profit the firm should continue to produce the output it is producing. C) to maximize profit the firm should increase output. D) Not enough information is given to say what the firm should do to maximize profit.
The banking system operates in such a way that in recessions, when loans (investments) are needed to stimulate economic activity, the system does not generate those loans
Indicate whether the statement is true or false
Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. An increase in interest rates in the United States. B. Higher tariffs imposed by the United States on imports. C. Higher quotas imposed by the United States on imports. D. An increase in interest rates in Japan.