If the economy experiences inflation and economic growth, this means that aggregate demand grows by more than aggregate supply
a. True
b. False
Indicate whether the statement is true or false
True
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In the aggregate expenditures diagram, the ________ line relates planned aggregate expenditure to output and the ________ line represents the condition that aggregate expenditure (AE) equals equilibrium output (Y).
A. 45°; aggregate expenditure B. consumption function; 45° C. aggregate expenditure; 45° D. 45°; consumption function
From 1970 to 2012, the Gini coefficient in the United States has
A) steadily increased. B) remained relatively unchanged. C) dramatically decreased. D) more than doubled.
Since World War II, the likelihood that the job of a new college graduate will be directly or indirectly affected by world trade
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) increased slightly before dropping off.
State and briefly explain whether or not the empirical evidence generally supports the belief that there is a fixed trade-off between unemployment and inflation, such that monetary policymakers can achieve the combination they prefer
What will be an ideal response?