If the aggregate demand curve shifts rightward less than expected...
What will be an ideal response?
the price level is lower than expected and output is below potential GDP
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During the mid 1980s the price of gasoline fell. Americans purchased not only more gasoline but other goods as well. Use consumer theory to explain why this happened
What will be an ideal response?
If financial markets were perfect, financial intermediaries would
A) be illegal. B) handle roughly half of all finance. C) be the conduit of all finance. D) probably not exist.
During a discussion with fellow economics students, Oliver emphasized the fact that prices and wages are sticky and they do not adjust quickly. Which of the following macroeconomic perspectives has most likely had the greatest influence on Oliver?
a. Classical b. Keynesian c. Neo Keynesian d. Neoclassical
In which of the following tax systems do taxes increase as income increases?
a. both proportional and progressive b. proportional but not progressive c. progressive but not proportional d. neither proportional nor progressive