An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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Which of the following increases in labor demand is due to a change in the price of a related resource?
A. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers. B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards. C. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers. D. Software sales rise, thus increasing the demand for software developers.
Suppose the market in Figure 9.4 is currently in equilibrium. If the government establishes a price floor of $50, how many widgets will be sold?
A) 20 B) 30 C) 40 D) 50 E) 60
A ration coupon is generally used
a. to allocate the excess supply of a good b. if a price floor is imposed on a market c. to limit the supply of a good d. if there is an excess supply e. to allocate the good under conditions of excess demand
Which of the following statements is false?
a. A decrease in the reserve ratio does not change the monetary base. b. Purchases of foreign currency by the central bank increase the monetary base. c. Discount loans to banks decrease a nation's monetary base. d. All are false. e. All are true.