An unexpected increase in aggregate demand
A. will reduce the unemployment rate.
B. will increase real GDP, but will not affect the rate and duration of unemployment.
C. will increase the average duration of unemployment.
D. will reduce the price level.
Answer: A
You might also like to view...
Decreases in the demand curve for labor may arise from ____ in labor productivity or from ____ in the price of the good
a. increases; increases. b. increases; decreases. c. decreases; increases. d. decreases; decreases.
Which of the following could produce the result indicated by the arrow in the Actual & Potential GDP graph? Check all that apply.
a. An increase in Consumer Spending
b. A decrease in Government Spending
c. An Increase in Taxes
d. A decrease in the money supply
e. An increase in Investment Spending
f. A decrease in Consumer Spending
When you deposit funds in a bank and then the bank lends these funds to a borrower, the bank is engaged in
A) fiduciary investment.
B) fraudulent behavior.
C) universal banking.
D) financial intermediation.
What is meant by aggregation? Why is aggregation important for macroeconomic analysis?
What will be an ideal response?