Changes in aggregate demand can cause fluctuations in _____ and _____ in the short run, and only ____ in the long run
Fill in the blank(s) with correct word
output, prices, prices
You might also like to view...
Answer the following statements true (T) or false (F)
If the marginal propensity to save is 0.4, the multiplier is 2.5. Money will fail to serve as a medium of exchange if it ceases to be a store of value. Aggregate expenditure includes consumption spending, unplanned investment spending, government purchases, and net exports. When Jack's income increases by $1,000, he spends an additional $850 dollars. This implies that his marginal propensity to consume is 0.85. When the dollar becomes stronger compared to the Japanese Yen, then the Japanese imports from the U.S. will increase.
When determining her accounting profit, an entrepreneur would include
A) her foregone wages. B) her foregone interest. C) her foregone rent. D) all of the above. E) none of the above.
The decline in the US manufacturing sector was the result of:
a. increasing productivity in the manufacturing sector. b. the increasing ability of consumers to purchase foreign manufactured goods more cheaply. c. faster growth of the service sector. d. All of the above are correct. e. Only b and c are correct.
According to supply-side fiscal policy, reducing tax rates on wages and profits will:
a. create demand-pull inflation. b. lower the price level but may trigger a recession. c. result in stagflation. d. reduce both unemployment and inflation.