Assuming a long-run aggregate supply curve, a decrease in consumer confidence results in ________ in output and ________ in price level
A) a decrease; no change B) a decrease; a decrease
C) an increase; no change D) no change; a decrease
D
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In the figure above, Gap maximizes its profit if it charges ________ per jacket
A) $100 B) $95 C) $75 D) $120
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. What will the market price be?
A) $10 B) $18 C) $24 D) >$24
Assume the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market
A) the supply curve will shift to the left and the equilibrium price will increase. B) the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease. C) the demand curve will shift to the left and the equilibrium price will decrease. D) the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase.
How will firms react to rising output price levels? What reactions can they expect from their employees and suppliers over time?