Figure 5-2
?
In Figure 5-2, if the aggregate demand curve shifts outward over time, the economy will
A. experience inflation.
B. see a sustained decrease in the price level.
C. experience a significant decrease in unemployment.
D. experience economic recession.
Answer: A
You might also like to view...
Which of the following is likely to be used as a signal in the job market?
A) The job description B) The degree obtained by the applicant C) The letter of appointment D) An announcement of vacancy
When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance, the insurance market is said to face the problem of
A) economic irrationality. B) asymmetric information. C) adverse selection. D) moral hazard.
There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:
a. $.01. b. $1. c. $2.99. d. $3. e. $600.
The type of unemployment that occurs because of a recession is called:
a. frictional unemployment. b. seasonal unemployment. c. natural unemployment. d. cyclical unemployment.