Everything else held constant, if aggregate output is to the ________ of the IS curve, then there is an excess ________ of goods which will cause aggregate output to rise
A) right; supply
B) right; demand
C) left; supply
D) left; demand
D
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
The sensitivity of the change in quantity consumed of one good to a change in the price of a related good is called
A) cross-elasticity. B) substitute elasticity. C) complementary elasticity. D) price elasticity of demand.
Which of the following would most likely NOT be taught in a macroeconomics course?
A) price changes in the world's oil markets B) factors leading to different economic growth rates among countries C) government actions in response to a slowdown in the economy D) the relationship between the inflation rate and the unemployment rate
Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and E is the current short-run aggregate supply (SRAS) curve. If a 90-day embargo of oil from the Middle East to the United States were announced, and if after that 90-day period oil prices were expected to return to normal pre-embargo prices, then you would expect
A. the LRAS and the SRAS to remain at B and E, respectively. B. the LRAS to shift to C, and the SRAS to shift to F. C. the LRAS to remain at B, but the SRAS to shift to F. D. the LRAS to remain at B, but the SRAS to shift to D.