If policymakers decrease aggregate demand, then in the long run
a. prices will be lower and unemployment will be higher.
b. prices will be lower and unemployment will be unchanged.
c. prices and unemployment will be unchanged.
d. None of the above is correct.
b
You might also like to view...
According to the monetarists,
a. stable growth in the money supply is needed for economic stability. b. aggregate demand is unstable, mostly because of unstable investment demand. c. there is a need for fiscal policies to stabilize output. d. stable money growth is not needed for the economy to be stable.
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If S3 is the market supply curve, then each firm in this market will earn an economic loss of ________ per week.
A. $3,000 B. $1,000 C. $1,500 D. $2,000
A person has a comparative advantage in an activity whenever he or she
A) has an absolute advantage in the activity. B) can perform the activity at a lower opportunity cost than can anyone else. C) can do the activity in less time than anyone else. D) can do everything better than anyone else.
A Tiebout model involves
A. completely mobile individuals. B. governments generating no externalities. C. perfect information. D. all of these answer options are correct.