A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
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In Figure 13-1, which panel shows the effect of inflation on the interest rate?
a. Panel (C) b. Panel (D) c. Panel (A) d. Panel (B)
Other things the same, an increase in taxes shifts aggregate demand to the left. In the short run this makes output fall which makes the interest rate rise
a. True b. False Indicate whether the statement is true or false
Unemployment insurance and welfare programs work as automatic stabilizers
a. True b. False Indicate whether the statement is true or false
ADRs that are created at the request of a foreign firm wanting its shares traded in the United States are ________.
A) facilitated B) unfacilitated C) sponsored D) unsponsored