Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Indicate whether the statement is true or false
Part of the reason that people confuse money and income is because
a. money is tangible, but income is intangible. b. money serves as the unit of account. c. money is abstract, but income is concrete. d. income is almost impossible to measure.
Which of the following sayings best reflects the concept of opportunity cost?
a. "You can't teach an old dog new tricks." b. "Time is money." c. "I have a baker's dozen." d. "There's no business like show business."
Suppose that Barack and Michelle are duopolists. Barack is producing 300 units of output, and Michelle is producing 400 units of output. When Michelle produces 400 units, Barack maximizes profit by producing 300 units. When Barack produces 300 units of output, Michelle maximizes profit by producing 400 units. Barack and Michelle are
a. in a competitive market. b. at a Nash equilibrium. c. producing with no deadweight loss. d. selling at a price higher than the monopoly price.