If the aggregate demand curve shifts to the right in the short run then the long-run equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and higher level of output.
C. higher price level and higher level of output.
D. higher price level and same level of output.
Answer: D
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A reason the production possibilities frontier exists is
A) unlimited resources and technology. B) scarcity of resources. C) scarcity of resources and unlimited technology. D) unemployment. E) that people's wants are unlimited.
A decrease in the real wage would result in a
A) movement along the labor demand curve, causing an increase in the number of workers hired by the firm. B) shift of the labor demand curve, causing an increase in the number of workers hired by the firm. C) movement along the labor demand curve, causing a decrease in the number of workers hired by the firm. D) shift of the labor demand curve, causing a decrease in the number of workers hired by the firm.
Whenever marginal revenue is greater than marginal cost, a profit-maximizing firm should reduce its output
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct about neoclassical economists?
a. Neoclassical economists emphasize Say’s law, which holds that supply creates its own demand. b. Neoclassical economists emphasize Keynes’ law, which holds that supply creates its own demand. c. Neoclassical economists emphasize Say’s law, which holds that demand creates its own supply. d. Neoclassical economists emphasize Keynes’ law, which holds that demand creates its own supply.