In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP
Indicate whether the statement is true or false
FALSE
Economics
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Economists consider the economy to be at "full employment" when there is no cyclical unemployment
Indicate whether the statement is true or false
Economics
The quantity theory of inflation indicates that if the aggregate output is growing at 3% per year and the growth rate of money is 5%, then inflation is
A) 2%. B) 8%. C) -2%. D) 1.6%.
Economics
What interest rate does a bank pay when it borrows reserves from the Fed?
a. The discount rate. b. The prime rate. c. The federal funds rate. d. The required reserve rate.
Economics
Describe the difference between positive and negative incentives. Give an example of each.
What will be an ideal response?
Economics