Which of the following will most likely occur in the short run if long-run equilibrium is disturbed by an unanticipated decrease in aggregate demand?
What will be an ideal response?
A decrease in output and a lower price level
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A tax rebate, like the one issued in 2008, is likely to ________ consumption spending ________ than would a permanent tax cut
A) increase; more B) decrease; more C) increase; less D) decrease; less
When the federal funds rate equals the interest rate paid on excess reserves
A) the supply curve of reserves is vertical. B) the supply curve of reserves is horizontal. C) the demand curve for reserves is vertical. D) the demand curve for reserves is horizontal.
Long-run aggregate supply shocks are not a source of business cycle fluctuations in the ________, because ________
A) traditional Keynesian model; long-run supply shocks are incompatible with adaptive expectations B) traditional Keynesian model; demand fluctuations are considered of dominant importance C) real business cycle model; shocks cannot persist in the long run, when prices and wages are flexible D) new Keynesian model; such shocks are anticipated by forward-looking consumers and firms
Which of the following exchanges handles numerous technology companies including Intel and Microsoft?
A. NASDAQ B. NYSE C. AMEX D. None of the above handle technology stocks.