A decrease in aggregate demand will cause
A) prices to fall according to classical economists, and unemployment to increase according to Keynes.
B) prices to fall and unemployment to increase according to both classical economists and Keynes.
C) aggregate supply to fall according to classical economists, and prices to fall according to Keynes.
D) aggregate supply to fall according to Keynes, and unemployment to increase according to classical economists.
A
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"In the past five years the average price of our Chevrolets has risen about 6 percent a year, and each year we have sold 10 percent more cars than the previous year." How can this car dealer sell more cars as the price of the cars increases?
What will be an ideal response?
Explicit provisions in a loan agreement that prohibit the borrower from engaging in certain activities is called:
A) credit rationing B) restrictive covenants C) credit-risk analysis D) adverse selection
When foreign countries buy wheat grown in the United States, they are generating a
A. Demand for U.S. dollars and a supply of a foreign currency. B. Demand for U.S. dollars and a demand for a foreign currency. C. Supply of U.S. dollars and a supply of a foreign currency. D. Supply of U.S. dollars and a demand for a foreign currency.
Which institutions can create money?
A. Mutual funds and retirement funds B. The government and its agencies C. The Fed and the banks D. Households and corporations