Assuming an economy starts in long-run equilibrium, if the aggregate demand curve were to decrease:
A. prices in the economy would increase.
B. output in the economy would increase.
C. the short-run aggregate supply curve would shift left.
D. the long-run effect would be a lower price level.
D. the long-run effect would be a lower price level.
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The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. Using the figure, how much tax revenue does the government raise?
A) $20,000 B) $40,000 C) $60,000 D) $80,000
The percentage change in the quantity supplied in response to a percentage change in the price is known as the
A) slope of the supply curve. B) excess supply. C) price elasticity of supply. D) All of the above.
Use the concept of economic rent to explain how rent controls could have an effect quite opposite to the intention
If you want to fly to Los Angeles, a place most airlines fly in and out of, the airline industry is likely _____, but if you want to fly to a small town in Texas, where only one airline flies, the airline industry is likely _____.
A.) Competitive; duopolistic B.) Competitive; monopolistic C.) Monopolistic; competitive D.) Monopolistic; oligopolistic