In the long run, an increase in aggregate demand causes the price level to _______ and the long-run aggregate supply curve to _____________
a. decrease; decrease
b. increase; increase
c. decrease; remain unchanged
d. increase; remain unchanged
d
You might also like to view...
Cost-push inflation occurs
A) when the aggregate supply curve shifts to the left, while aggregate demand remains stable. B) when the aggregate demand curve shifts to the left, while aggregate supply remains stable. C) when the aggregate supply curve shifts to the right, while aggregate demand remains stable. D) when the aggregate demand curve shifts to the right, while aggregate supply remains stable.
Fred buys a fresh-off-the-assembly-line car from Wee-Rob-U Auto Sales. He paid $27,500, even though Wee-Rob-U acquired it for $23,000. What happens to this year's GDP?
A) Nothing. B) It increases by $4,500. C) It increases by $23,000. D) It increases by $27,500. E) It decreases by $4,500, because the dealer robbed Fred.
A firm's shutdown point is the output and price at which the firm's total revenue just equals its total variable cost
Indicate whether the statement is true or false
A vertical curve that defines the level of full-employment or potential output based on a given amount of resources, efficiency, and technology in the economy is called:
A) the short-run aggregate supply curve. B) the long-run aggregate supply curve. C) the aggregate demand curve. D) none of the above.