An expected rise in the rate of inflation for consumer goods will:
A. decrease current aggregate supply.
B. increase current aggregate demand.
C. increase current aggregate supply.
D. decrease current aggregate demand.
Answer: B
You might also like to view...
Price controls date back to
A. World War II. B. the U.S. Revolutionary War. C. thousands of years, at least back to ancient Babylonia. D. the 1970s. E. the last 20 years.
According to the factor price equalization theorem, free international trade will result in wages equating rents worldwide
Indicate whether the statement is true or false
(Appendix) A demand function that has a unitary elasticity at every point will
A. be a horizontal line. B. be negatively sloped and a straight line. C. have a declining slope as price falls. D. have a positive slope when price is low.
Based on the graph showing the effects of an investment tax credit or a technological change, enacting an investment tax credit would ______.
a. increase the demand curve for loanable funds
b. decrease the demand curve for loanable funds
c. increase the supply curve for loanable funds
d. decrease the supply curve for loanable funds