In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then
A. a recessionary gap occurs.
B. an inflationary gap occurs.
C. there is no change in real GDP and the price level.
D. the level of economic activity rises.
Answer: A
You might also like to view...
Suppose the demand for specialty car license plates is perfectly inelastic and the supply curve for specialty license plates is upward sloping. A tax is imposed on specialty license plates. Which of the following is true?
A) Drivers pay the smallest share of the tax. B) Drivers pay none of the tax. C) Drivers pay all of the tax. D) The government pays all of the tax. E) The government collects nothing in tax revenues.
The results of a survey conducted by Dan Ariely and Michael Norton found that Americans
A) have a preference for much greater equality in wealth distribution than currently exists. B) have a preference for much less equality in wealth distribution than currently exists. C) have a preference for roughly the amount equality in wealth distribution that currently exists. D) show absolutely no preference for the amount of equality in wealth distribution in the nation.
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An economist would calculate the total cost for one photo frame to be
a. $5. b. $10. c. $15. d. $25.
The source of the supply of loanable funds is
a. saving, and the source of the demand for loanable funds is investment. b. consumption, and the source of the demand for loanable funds is investment. c. investment, and the source of the demand for loanable funds is saving. d. the interest rate, and the source of the demand for loanable funds is saving.