An oil price increase would
A. increase short-run aggregate supply.
B. decrease aggregate demand.
C. decrease short-run aggregate supply.
D. increase aggregate demand.
Answer: C
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Other things constant, which of the following would you expect to increase the output growth rate of a country?
What will be an ideal response?
In the early 2000s, policy makers were able to:
A. run contractionary policy without causing a rise in unemployment. B. run contractionary policy without causing deflation. C. impose tariffs on foreign goods without causing retaliation by foreign countries. D. run expansionary policy without causing inflation.
Suppose the economy is at point B. If firms expect profits will be higher in the future, to what point might the economy's move in the short run?
A) It stays at point B. B) It shifts to a point such as A. C) It shifts to a point such as C. D) None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.
A major macroeconomic leakage from the circular flow is:
a. Consumption b. Savings c. Saving d. Gross private domestic investment e. Government spending.