An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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We know that the minimum wage causes unemployment. So, why does the government impose one?
What will be an ideal response?
A monopsony has an upward sloping supply curve because
A) diminishing marginal product to scale does not exist in a monopsony. B) each additional unit of labor costs less. C) when more units of labor are hired, all laborers must receive the higher wage. D) when more units of labor are hired, only the new workers receive the higher wage.
This graph shows three different budget constraints: A, B, and C. If Ted's budget constraint is shown by line A in the graph shown, and Ted's income for these two items is $36, what are the prices of the two goods?
This graph shows three different budget constraints: A, B, and C.
A. Soda costs $3 per case, and milk costs $4 a gallon.
B. Soda costs $4 per case, and milk costs $3 a gallon.
C. Soda costs $12 per case and milk costs $9 a gallon.
D. Soda costs $6 per case and milk costs $3 a gallon.
In the last two decades, the Consumer Price Index in the U.S. has typically increased by _____ each year
a. more than 5 percent b. less than 2 percent c. 2–4 percent d. 4–8 percent