If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply fall.
b. Neither aggregate demand nor aggregate supply change.
c. Aggregate demand rises, and aggregate supply falls.
d. Aggregate demand rises, but aggregate supply does not change.
e. None of the above.
.A
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The firm in the above figure has a markup of ________ per meal
A) $0 B) $4 C) $8 D) $10 E) more than $10
Describe how changes in expected inflation impact an economy in the wake of a temporary negative supply shock
What will be an ideal response?
In the Sunday newspaper, there are usually coupons that you can clip and take to the store to save money on products. Anyone can buy a newspaper, and the value of the coupons easily exceeds the price of the newspaper for most consumers
Is this an example of price discrimination? Explain.
The capture theory of regulation, espoused by George Stigler, asserts that
a. consumers "capture" regulatory agencies so that regulation favors consumers b. producers "capture" regulatory agencies so that regulation favors producers c. regulators "capture" producers and limit their market power d. consumers "capture" some consumer surplus lost to monopoly e. consumers and producers work together to "capture" regulatory agencies in order to achieve more desirable regulation