Other things the same, an increase in aggregate demand reduces unemployment and raises inflation in the short run
a. True
b. False
Indicate whether the statement is true or false
True
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If an economy is represented by a point along its production possibilities curve
A) it can produce more of one product only if it produces less of another product. B) it cannot produce more of one product unless it stops producing the other product entirely. C) it can produce more of one product even if it does not produce less of another product. D) it cannot possibly produce more of one product, even if it produces less of another product.
Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:
A. -0.1818 B. -1.0 C. 0.1818 D. 1.2 E. -1.5
A movement along the demand curve for automobiles is caused by a change in:
A. the price of automobiles. B. the price of gasoline. C. the price of steel. D. consumers' incomes.
Checkable deposits are included in:
A. M1 but not in M2 B. M2 but not in M1 C. both M1 and M2 D. neither M1 nor M2