If aggregate supply increases and aggregate demand remains unchanged
A. there will be a positive relationship between the price level and the level of aggregate output.
B. the price level will remain unchanged, but aggregate output will decrease.
C. there will be no systematic relationship between the price level and the level of aggregate output.
D. there will be a negative relationship between the price level and the level of aggregate output.
Answer: D
You might also like to view...
If Herbert the hair stylist raises the price of his cuts from $13 to $15 and the demand for his cuts falls from 300 to 260, then we conclude that, within the price range of $13 to $15, demand is
a. price inelastic b. price elastic c. unit elastic d. cross elastic e. income inelastic
The invisible hand is
A. Perfect competition. B. The profit motive. C. Government direction. D. The mixed economy.
When a transfer price increases
a. the buying division will want to sell less to the selling division b. the buying division will want to sell more to the selling division c. the selling division will want to sell less to the buying division d. the selling division will want to sell more to the buying division
Economic profits disappear quickly when a market is
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.