If aggregate demand increases and aggregate supply decreases, the price level:
A. will decrease, but real output may increase, decrease, or remain unchanged.
B. will increase, but real output may increase, decrease, or remain unchanged.
C. and real output will both increase.
D. and real output will both decrease.
B. will increase, but real output may increase, decrease, or remain unchanged.
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Which of the following will not cause the demand curve for good X to shift?
A) a change in the price of X B) a change in the price of Y, a complement C) a change in the price of Z, a substitute D) an increase in average disposable real income
If a good has an elastic demand, then:
A. a small percentage change in price will cause a larger percentage change in quantity demanded. B. a small percentage change in price will cause virtually no change in quantity demanded. C. a large percentage change in price will cause a smaller change in quantity demanded. D. any percentage change in price will cause an almost immediate response in quantity demanded.
How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government when the trust fund experiences a surplus?
A. It increases the reported deficit. B. It reduces the reported deficit. C. It exerts no effect on the reported deficit. D. It increases the deficit during an economic boom but reduces it during a recession.
Figure 3.5 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from:
A. point a to point b. B. point c to point b. C. S2 to S1. D. S0 to S1.