If a demand shock causes the economy to move to a real GDP level that is below its full employment level, then
a. we refer to this as a positive demand shock.
b. the economy will remain at this point in the long run.
c. the AS curve will adjust in the long run until the economy returns to full employment.
d. the AD curve will move back to its original position in the long run.
e. the unemployment rate will decline.
C
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The set of all baskets of inputs that can be employed at a given cost defines a(n)
a. isoquant curve. b. isocost curve. c. expansion path. d. production function exhibiting constant returns to scale.
An interior solution to a consumer's utility maximization problem implies _________. (Select all that are true.)
the goods are perfect substitutes consuming more than an optimal amount of at least one good. consuming a positive amount of all goods. spending all income. spending less than full income. the goods are imperfect substitutes consuming a positive amount of one good and zero of the other good.
An increase in the U.S. price level (foreign prices held constant) will cause a leftward shift in the aggregate demand curve.
Answer the following statement true (T) or false (F)
If a profit-maximizing manager is provided a forecast regression with a R2 equal to 1.00, this allows the manager to produce where ________ marginal revenue is ________ the marginal cost.
A) actual; equal to B) expected; greater than C) expected; equal to D) actual; greater than