If an increase in the Z factors resulted in a very large change in the price level and a very small change in aggregate output
A. then the U.S. economy must have been on the very flat part of its short-run aggregate supply curve.
B. then the U.S. aggregate demand curve must be very steep.
C. then in the U.S. economy investment demand must not be sensitive to the interest rate.
D. then the U.S. economy must have been on the very steep part of its short-run aggregate supply curve.
Answer: D
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Trade surplus is the excess of exports over ________
A) capital outflows B) factor payments C) transfers D) imports
Per-unit taxes have which effect on the equilibrium price of a good?
a. They cause demand curves to shift downward, thus lowering price. b. They cause demand curves to shift downward, thus raising price. c. They cause supply curves to shift downward, thus lowering price. d. They cause supply curves to shift upward, thus lowering price. e. They cause supply curves to shift upward, thus raising price.
If a firm is operating on the production function, then workers:
A. are usually putting forth minimal effort. B. may not be putting forth maximal effort. C. are usually putting forth average effort. D. must be putting forth maximal effort.
Which of the following statements is (are) correct? Regardless of whether the LM curve is vertical or upward sloping,
a. a money stock target is superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule. b. an interest rate target is always superior to a money stock target when the uncertainty facing the policymaker concerns the IS schedule. c. both a money stock target or interest rate target provide the same results when the uncertainty facing the policymaker concerns the IS schedule. d. a money stock target is never superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.