Following an unexpected decline in aggregate demand, once production cutbacks start offsetting rising inventory levels:
a. the aggregate demand curve will shift to the right.
b. the aggregate supply curve will shift to the left.
c. the economy will return to its natural rate of unemployment.
d. the short-run Phillips curve will shift to the right.
e. the economy will face both higher inflation and a higher unemployment rate.
c
You might also like to view...
In which market structure does one firm sell a good or service with no close substitutes and there is a barrier blocking the entry of new firms?
A) only monopoly B) only oligopoly C) perfect competition D) monopolistic competition E) either monopoly or oligopoly
Males major in engineering much more frequently than females. Starting salaries for engineers (male or female) are much higher than average. As a result, the observed gender wage gap for all college graduates will be ________ than the gender wage gaps in specific majors because ________.
A. smaller; males and females choose different majors B. larger; of employer discrimination C. larger; males and females choose different majors D. larger; of academic discrimination
If, for the last bushel of apples produced and sold by an apple farm, marginal revenue exceeds marginal cost, then in producing that bushel the farm
A) added more to total cost than it added to total revenue. B) added an equal amount to both total revenue and total cost. C) added more to total revenue than it added to total cost. D) maximized its profits or minimized its losses.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. The natural rate of unemployment occurs at
A. U0. B. U1. C. U2. D. a level of zero unemployment.