Within the AD/AS model, if consumers increase their savings and cut back on their spending, the
a. natural rate of unemployment will increase.
b. real interest rate will decrease and, thereby, cushion the reduction in consumption spending.
c. real interest rate will increase because of the higher rate of saving.
d. long-run aggregate supply will decrease to restore equilibrium.
B
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The aggregate demand curve will shift to the left if
A) government expenditures increase. B) people are more optimistic about their future. C) the nation's exports decrease. D) a reduction in the price level pushes down borrowing costs.
A room heater is a ________
A) club good because it is excludable but non-rival in consumption B) club good because it is non-excludable but rival in consumption C) public good because it is non-excludable and non-rival in consumption D) private good because it is excludable and rival in consumption
What are the effects of a rent ceiling set below the equilibrium rent?
What will be an ideal response?
The worldwide slowdown in labor productivity began in the early
a. 1960s. b. 1970s. c. 1980s. d. 1990s.