If resource suppliers and demanders find out that the actual price level exceeds the expected price level, they will take corrective actions that will:
a. cause the economy to move away from the potential output level
b. raise the unemployment level above the natural rate of unemployment.
c. shift the aggregate demand curve of an economy.
d. shift the short-run aggregate supply curve of an economy.
e. lower the actual price level.
d
You might also like to view...
Under a principal/agent relationship, the agent faces high costs of determining whether the principal is actually making efforts to the extent the agent expects
Indicate whether the statement is true or false
If the demand for hand-sewn leather shoes increases, it is highly likely the demand for:
A. all shoe-types will also increase. B. skilled sewers will increase. C. needle and thread will decrease. D. leather will decrease.
Which of the following is a characteristic of monopolistic competition?
A) few firms B) homogeneous products C) easy entry and exit D) strategic dependence
Historical analysis of real interest rates in the United States shows that
A. real interest rates were unusually low in the 1970s and unusually high in the 1980s. B. real interest rates were unusually low in both the 1970s and 1980s. C. real interest rates were unusually low in the 1980s, spurring the economic growth that occurred during the Reagan administration. D. real interest rates were unusually high in both the 1970s and 1980s.