When the actual price level in an economy turns out to be lower than that expected in the short run, _____
a. businesses cut back production
b. the potential output level decreases
c. the aggregate supply curve shifts leftward
d. the aggregate supply curve shifts rightward
e. an expansionary gap develops
a
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For which of the following projects would it likely be most difficult to acquire 1,000 acres of land?
A) growing wheat B) building an amusement park C) building storage sheds D) digging wells
Figure 7-7
In Figure 7-7 at 100 units, FC equals
A. 1,000. B. 1,800. C. 800. D. 80.
Refer to Figure 10.3. A positive demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE1 to AE2; a movement from point A to point B D) a shift from AE1 to AE3; a movement from point A to point C
Which of the following will not cause the aggregate supply curve to fall?
a. Natural disasters. b. An increase in input prices. c. A reduction in the nation's level of productivity. d. A decrease in the nation's average price level (i.e., the implicit price index). e. None of these answers is correct.