Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns?
A) $1,680 B) $72 C) $14 D) $12.3
In Chapter 11, depreciation is assumed to be
A) a fixed proportion of real GDP. B) a fixed proportion of the capital stock. C) a fixed absolute amount. D) zero. E) a fixed proportion of the capital-labor ratio.
Most economists agree that the self-correcting mechanism works
a. very slowly. b. very rapidly. c. rapidly in the short run and slowly in the long run. d. slowly in the short run and rapidly in the long run.
If the Fed wishes to increase the money supply, it could:
A. increase the discount rate. B. buy bonds. C. increase the reserve requirement. D. print more currency.