A simultaneous rise in both aggregate demand and short-run aggregate supply will definitely
A) raise the price level, but there is not enough information provided to know how Real GDP will change.
B) lower Real GDP, but there is not enough information provided to know how the price level will change.
C) raise the price level and Real GDP.
D) raise Real GDP, but there is not enough information provided to know how the price level will change.
E) raise the price level and lower Real GDP.
D
You might also like to view...
In the law of torts, what is meant by a negligence standard? How does a negligence standard promote economic efficiency? How can it lead to less-than-efficient outcomes?
What will be an ideal response?
Buyers and sellers acting in their own best interest generate outcomes that are in society's best interest when all of the following are true except:
A. buyers and sellers are informed. B. markets are inefficient. C. there are no external benefits. D. there are no external costs.
When a person can pass some of her costs of using a resource on to someone else,
A. she uses too much of the resource. B. the use of the resource is not affected by her actions. C. the internal costs of using the resource exceed the private costs. D. she uses too little of the resource.
In Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve, ________
A) unemployment will, in the long run, reach the natural rate B) in the long run, expected inflation will reach the NAIRU C) inflation is positively related to the unemployment gap D) all of the above E) none of the above