The price level rises in the short run if
A. aggregate demand or aggregate supply shifts right.
B. aggregate demand shifts right or aggregate supply shifts left.
C. aggregate demand shifts left or aggregate supply shifts right.
D. aggregate demand or aggregate supply shifts right.
Ans: B. aggregate demand shifts right or aggregate supply shifts left.
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The era of bank panics in the United States was effectively ended by
A) establishing the Fed as lender of last resort. B) implementing the gold standard. C) abandoning the gold standard. D) introducing deposit insurance.
Changing the price of a good will usually result in a negative externality
Indicate whether the statement is true or false
Under the Bretton Woods system of fixed exchange rates, the price of the U.S. dollar was fixed in terms of gold and the prices of all other currencies were fixed in terms of dollars.
Answer the following statement true (T) or false (F)
The size of the underground economy would tend to increase if the government of a country
A) increased income tax rates. B) decreased government regulations on businesses. C) legalized prostitution. D) legalized marijuana.