If aggregate demand shifts from AD1 to AD2,
A. both output and the price level will rise.
B. output will rise and the price level will fall.
C. output will rise and the price level will remain the same.
D. both output and the price level will fall.
C. output will rise and the price level will remain the same.
You might also like to view...
What is meant by the marginal tax rate?
A) The highest rate that can be extracted. B) The lowest rate that will still meet the government's revenue requirements. C) The percentage of additional income that is taken by taxes. D) The rate paid by businesses that are just barely able to survive.
The optimal combination of goods for a consumer to purchase is shown by
A. any intersection of the indifference curve and the budget line. B. the point where the budget line touches the vertical axis. C. a point of tangency between the budget line and the indifference curve. D. the point at which the indifference curve parallels the horizontal axis. E. the intersection of two indifference curves.
A depository institution creates liquidity and pools risk
Indicate whether the statement is true or false
Frictional unemployment occurs because:
A. there are long-term mismatches between workers skills and jobs available. B. the economy is experiencing a period of unusually low production. C. structural barriers such as unions and minimum wage laws keep wages too high to clear the labor market. D. labor markets are heterogeneous and dynamic.