Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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When firms analyze the relationship between their level of production and their costs they separate the time period involved into
A) a fixed period and a variable period. B) morning and evening. C) the short run and the long run. D) 6 months or less; 6 months to 1 year; more than 1 year.
According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only. b. will shift the aggregate demand schedule only. c. will shift both the aggregate demand and aggregate supply schedules. d. None of the above
If a series of major technological breakthroughs occur in the economy at the same time, then the most likely outcome would be that the economy's
a. investment curve will shift downward b. investment curve will shift upward c. consumption curve will shift downward d. consumption curve will shift upward e. position along the existing investment curve will move upward
“Correlation” is a measure of how one variable causes another to change.
Answer the following statement true (T) or false (F)