Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short run, which of the following is most likely to occur?
A) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the right. B) New firms that sell Italian ice will enter the market and Tony's demand curve will become more inelastic. C) New firms that sell Italian ice will enter the market and Tony's cost curves will shift to the left. D) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the left.
Which of the following would most likely increase the supply of beef?
a. lower prices of grains used to feed cattle b. lower prices for chicken, a substitute for beef c. new medical research suggesting that beef causes more serious health problems than was previously thought d. an increase in the cost of transporting beef products to the consumer market
If there is a stable downward-sloping Phillips curve, it follows that an economy can choose the combination of
A) high unemployment and low inflation. B) low unemployment and high inflation. C) moderate unemployment and moderate inflation. D) low inflation and low unemployment. E) a, b, and c
Which statement is true?
A. A change in derived demand brings about a change in final demand. B. A change in final demand brings about a change in derived demand. C. A rise in final demand is associated with a decline in derived demand. D. None of these statements are true.