Everything else held constant, if aggregate output is to the left of the IS curve, then there is an excess ________ of goods which will cause aggregate output to ________
A) supply; fall
B) supply; rise
C) demand; fall
D) demand; rise
D
You might also like to view...
"Being the only seller in the market, the monopolist can choose any price and quantity it desires." Evaluate this statement: Is it true or false? Explain your answer
What will be an ideal response?
If a monopolist is producing the output level at which price equals average total cost in the short run, then the firm is earning a normal profit
a. True b. False Indicate whether the statement is true or false
A progressive tax system
A. Provides more work incentives than a system with constant marginal tax rates. B. Promotes more investment than a system with constant marginal tax rates. C. Means higher marginal tax rates at higher income levels. D. Means lower marginal tax rates at higher income levels.
When import quotas are imposed by a government
A. the supply of the product on the domestic market increases. B. the domestic producers always lower the prices of their products to ensure that their products are sold. C. the government is trying to discourage consumers from buying foreign-made goods. D. the price ceiling for the product has to be lowered.