When the aggregate demand curve shifts rightward, the price level ________ and the unemployment rate ________
A) decreases; increases
B) decreases; decreases
C) increases; decreases
D) does not change; does not change
E) increases; increases
C
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Which of the following statements best describes consumer surplus in the supply and demand model?
a. Consumer surplus is the area in the supply and demand model that is above the market price and above the demand curve. b. Consumer surplus is the area in the supply and demand model that is below the market price and below the demand curve. c. Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve. d. Consumer surplus is the area in the supply and demand model that is below the market price and above the demand curve.
If a firm increases inputs by 15 percent and output increases by 12.5 percent, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.
Suppose that the minimum wage was increased to $10 per hour. Which of the following would be most likely to result from the minimum wage increase?
a. an increase in the employment of low-skill workers previously employed at wage rates of less than $10 per hour b. an increase in the number of jobs providing low-skill workers with on-the-job training c. a reduction in the number of teenagers unemployed d. an increase in the demand for high-skill workers providing services that are a good substitute for those whose wages were pushed up by the higher minimum wage
The national debt is defined as the total
A. amount that U.S. citizens owe to foreigners. B. value that U.S. citizens borrow from foreigners during any time period. C. value of government’s indebtedness at any moment in time. D. amount by which government’s expenditures exceed receipts during any time period.