Shifts in aggregate demand affect the price level in
a. the short run but not in the long run.
b. the long run but not in the short run.
c. both the short and long run.
d. neither the short nor long run.
c
You might also like to view...
Flexible exchange rates exist when
A) no one knows what the true value of a currency is. B) governments and central banks spend foreign reserves to prop up an exchange rate at a certain level. C) exchange rates are determined by forces of supply and demand. D) speculators bet that a currency will soon be depreciated.
In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate
a. True b. False Indicate whether the statement is true or false
If a corporate bond with a face value of $20,000 pays yearly coupon payments of $500, what is the coupon rate?
A) 2.5% B) 4% C) 25% D) 40%
Assume the prices of labor and capital remain the same, but the average educational level of workers decreases and therefore labor productivity decreases. This would lead a firm to
A. not change its production technology, but produce fewer units of output. B. use a more capital-intensive production technology. C. use only capital to produce the product. D. use a more labor-intensive technology.