If a decrease in the growth rate of AD leads to a decrease in real GDP in the short run:
a. the decrease in AD could have been correctly anticipated
b. the decrease in AD could have been than anticipated
c. the decrease in AD would have been completely unanticipated.
d. the decrease in AD could have been any of the above.
c
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When there are two goods (X and Y), the consumer's optimum is typically found by locating the basket where the marginal value of X in terms of Y equals PX/PY. Explain in words what this equality means, and describe two situations where the consumer's optimum is not characterized by this equation.
What will be an ideal response?
In national income accounting, the value of worn out or obsolete capital is represented by
A) depreciation. B) transfer payments. C) disposable income. D) dividends.
What are the accurate coordinates for the new equilibrium for price and quantity?
a. P2 and Q2
b. P1 and Q1
c. P2 and Q1
d. P1 and Q2
M2 consists of M1 plus savings deposits, small time deposits, money market mutual funds, and a few minor categories.
Answer the following statement true (T) or false (F)