Suppose that during the Great Depression long-run aggregate supply shifted left. To be consistent with what happened to the price level and output, what would have had to happen to aggregate demand?
a. It would have to have shifted left by less than aggregate supply.
b. It would have to have shifted left by more than aggregate supply.
c. It would have to have shifted right by less than aggregate supply.
d. It would have to have shifted right by more than aggregate supply.
b
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Which of the following is NOT a source of borrowings for a bank?
A) federal funds B) Eurodollars C) transaction deposits D) discount loans
When firms exit a monopolistically competitive market: a. product variety diminishes
b. prices fall. c. profits decrease (losses increase). d. the demand curves of established firms shift to the right.
The average agricultural tariff in the U.S. is about
A) 3 percent. B) 5 percent. C) 9 percent. D) 15 percent.
A critical function of the government in facilitating the operation of a market economy is
A) producing goods and services for low-income households. B) setting up and enforcing private property rights. C) ensuring an equal distribution of income to all citizens. D) controlling the market prices of food items.