If aggregate demand shifts outward over a long period of time, with aggregate supply held constant, the economy should experience
a. unemployment.
b. recession.
c. budget surpluses.
d. inflation.
d
Economics
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Describe the technology transfer benefit of capital flows and the political power cost of large capital flows into low-income countries
What will be an ideal response?
Economics
The yield to maturity on a new one-year discount bond equals
A) (F V- P)/P. B) (D - FV)/P. C) (FV - P)/FV. D) (P - FV)/FV.
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In a one-period economic model, the government budget constraint requires that government spending
A) = taxes + transfers. B) = taxes + borrowing. C) > 0. D) = taxes.
Economics
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
Economics