Based on the graphs for an increase in aggregate demand and the Phillips curve, we can see that when inflation is high, ______.
a. RGDP is low
b. unemployment is high
c. aggregate demand is weak
d. aggregate demand is strong
d. aggregate demand is strong
You might also like to view...
A(n) ________ in U.S. prices will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
If Nick consumes only two goods, oranges and plums, and he increases his consumption of oranges, then
a. the price of oranges must have increased b. Nick's income must have increased c. plums and oranges must be complements d. he must reduce his consumption of plums to remain on the same indifference curve e. Nick's MU/P of oranges will now increase
When marginal revenue is positive,
A. marginal revenue is greater than price. B. demand is elastic. C. decreasing price will decrease total revenue. D. both b and c E. all of the above
Automatic stabilizers are government programs that:
A. exaggerate the ups and downs in aggregate demand without legislative action. B. bring expenditures and revenues automatically into balance without legislative action. C. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion. D. increase tax collections automatically during a recession.