A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ______ in potential real GDP and _______ in the price level
a. an increase; no change
b. a decrease; no change
c. no change; an increase
d. no change; a decrease
d
You might also like to view...
After running a promotional campaign, the owners of a local shoe store decided to decrease the prices for the shoes sold in their store. One can imply that
a. The promotional expenditures made the demand for their shoes more elastic b. The promotional expenditures made the demand for their shoes more inelastic c. The promotional expenditures has no effect on the shoe demand elasticity d. The owners got it wrong. To cover the promotional expenses, they should have raised the prices.
A bank run is:
A. the situation that arises from fear that the bank is in danger of running out of money. B. when all depositors from a single bank demand to withdraw all deposits at once. C. when a bank's reserves are not enough to satisfy all withdrawal demands. D. All of these are true.
Other things being equal, an increase in the workplace amenities, such as increased health care and more generous vacation options, would tend to shift the labor supply curve to the ____. a. left, increasing wages
b. right, increasing wages. c. left, decreasing wages. d. right, decreasing wages.
Given the value of marginal product of labor, the higher the wage rate, the higher the number of workers employed
Indicate whether the statement is true or false