As the aggregate demand curve shifts leftward along a given aggregate supply curve,
a. unemployment and inflation are higher.
b. unemployment and inflation are lower.
c. unemployment is higher and inflation is lower.
d. unemployment is lower and inflation is higher.
c
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The wealth effect explains the:
A. negative relationship that exists between consumer spending and overall price level. B. positive relationship that exists between consumer spending and overall price level. C. negative relationship that exists between consumer spending and overall asset valuation. D. positive relationship that exists between consumer spending and overall asset valuation.
When an economy is experiencing a negative output gap, there is:
A. inflationary pressure due to low demand. B. inflationary pressure due to high demand. C. significant inflationary pressure due to low demand. D. significant inflationary pressure due to high demand.
]If consumers become more optimistic, which of the following is the most likely in the short run?
a. A decrease in output, a decrease in money demand, and a decrease in the interest rate. b. An increase in output, an increase in money demand, and an increase in the interest rate. c. An increase in output, an increase in money demand, and a decrease in the interest rate. d. A decrease in output, an increase in money demand, and a decrease in the interest rate. e. An increase in output, a decrease in money demand, and a decrease in the interest rate.
If you worked 35 hours a week at a minimum wage job you could ________ a family of four above the poverty line.
A. easily keep B. barely keep C. not come close to keeping