Within the AD/AS model, an unanticipated increase in short-run aggregate supply will cause real output to
a. increase and the general level of prices to fall.
b. decrease and the general level of prices to rise.
c. increase and the general level of prices to rise.
d. decrease and the general level of prices to fall.
A
You might also like to view...
If a country's income grows at the rate of 5 percent a year, it doubles in about
A) eight years. B) six and one-half years. C) ten years. D) fourteen and one-half years. E) twenty years.
A higher rate of saving at the national level will, in the long-run ________
A) cause a decrease in levels of capital and output B) have no effect on levels of capital and output C) lead to an increase in population growth D) cause an increase in levels of capital and output
If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:
a. 1. b. 9. c. 10. d. 90.
The aggregate demand curve shows:
a. how the equilibrium level of aggregate expenditure changes in response to changes in production. b. the amount people spend at different real GDP levels. c. the positive relationship between the price level and real GDP. d. the negative relationship between aggregate expenditure and real GDP. e. how the equilibrium level of aggregate expenditure changes as the price level changes.