If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with a(n):
A. Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rises
B. Decrease in short-run aggregate supply, so output increases and the price level rises
C. Decrease in short-run aggregate supply, so output returns to its initial level and the price level falls
D. Increase in short-run aggregate supply, so output increases and the price level rises
A. Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rises
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The table above gives information about the economy of France. The growth rate of real GDP per person in 1998 is ________ percent
A) 0.4 B) 3.1 C) 1.9 D) 3.6 E) 4.0
Refer to Table 4-1. The table above lists the highest prices three consumers, Tom, Dick, and Harriet, are willing to pay for a short-sleeved polo shirt. If the price of one of the shirts is $28 dollars
A) Tom will receive $12 of consumer surplus from buying one shirt. B) Harriet will receive $25 of consumer surplus since she will buy no shirts. C) Tom will buy two shirts, Dick will buy one shirt and Harriet will buy no shirts. D) Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each. Harriet will buy no shirts.
If Niki is willing to pay up to $5 for an ice-cream bar but she actually pays $2 for it. The consumer surplus of the ice-cream bar for Niki
A) is $2. B) is $3. C) is $7. D) cannot be determined without information about the market structure.
Figure 36-6
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In Figure 36-6, an expansive fiscal policy in a closed economy results in an equilibrium at point E. In an open economy, allowing for the effects of the induced change in the currency value, the final equilibrium would be point
A. B. B. F. C. J. D. H.