Following shifts can explain an increase in the price level and decrease in real output.
What will be an ideal response?
A leftward shift in the Short-Run Aggregate Supply Curve.
You might also like to view...
When tastes are quasilinear in leisure, which of the following is true:
A. The wage elasticity of labor supply is zero. B. The wage elasticity of labor supply is positive. C. The wage elasticity of labor supply is negative. D. The wage elasticity of demand is negative. E. Both (a) and (d). F. Both (b) and (d). G. Both (c) and (d).
The rules and principles of economics that serve as a guide for action are known as
a. economic policy. b. economic theory. c. macroeconomics. d. microeconomics.
The perfectly competitive firm's long-run supply curve is
a. the same as the industry's supply curve b. the average total cost curve c. perfectly horizontal d. the marginal cost curve above the ATC e. the marginal cost curve above the AVC
The real balance effect works through a change in the value of
A) monetary assets in response to changes in the unemployment rate. B) nonmonetary assets in response to changes in the unemployment rate. C) monetary assets in response to changes in the price level. D) nonmonetary assets in response to changes in the price level.