Which of the following is a lesson concerning shifts in aggregate demand?
a. they contribute to fluctuations in output.
b. in the long-run they change real output, but not the price level.
c. policymakers are unable to mitigate the severity of economic fluctuations.
d. All of the above are correct.
a
You might also like to view...
Which of the following is likely to happen when the interest rate falls?
A) The volume of economic activity will reduce. B) The labor demand curve will shift to the left. C) Equilibrium wage rate will fall. D) The labor demand curve will shift to the right.
The figure above shows Sam's budget line. Which of the following would result in Sam's budget line rotating inward and not changing its vertical intercept?
A) a decline in his preference for coffee B) a fall in the price of a gallon of gasoline C) a decrease in Sam's income D) an increase in the price of a pound of coffee
If the U.S. government's borrowing needs increase, all other factors constant the:
A. supply of bonds will increase. B. supply of bonds and the demand for bonds will both increase. C. demand for bonds will decrease. D. price of bonds will increase.
Real disposable income for a household equals
a. the real return on capital services. b. real income available after taxes. c. the nominal wage rate. d. the real return on capital services after taxes.