An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
You might also like to view...
Refer to Scenario 12.2. Suppose that the marginal cost falls such that:
MC = Q - 10 What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above
Government regulation of the prices charged by monopolies is an example of
a. safety regulation b. economic regulation c. Herfindahl regulation d. antitrust regulation e. antimerger regulation
Socialism is correctly described by which of the following statements?
a. Central planning is used exclusively to answer the basic economic questions. b. Markets are used exclusively to answer the basic economic questions. c. Tradition is used exclusively to answer the basic economic questions. d. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Suppose the stock market rises, causing a rapid increase in consumers’ wealth. This would lead to
A. a downward movement along the consumption function. B. a downward shift of the consumption function. C. an upward movement along the consumption function. D. an upward shift of the consumption function.