In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then
A) the level of economic activity rises.
B) a recessionary gap occurs.
C) there is no change in real GDP and the price level.
D) an inflationary gap occurs.
B
You might also like to view...
Refer to the scenario above. What is likely to be the impact on Firm A's sales if both the firms decide to sponsor the event?
A) A 5% increase in sales B) A 2% increase in sales C) A 0% increase in sales D) A 10% increase in sales
A decrease in productivity will cause
A. AS to increase (move down and to the right). B. AS to decrease (move up and to the left). C. AD to decrease (move to the left). D. AD to increase (move to the right).
Between 1989 and 1994 the poverty rate went _____.
A. down substantially B. down slightly C. up slightly D. up substantially
Oligopolistic industries are characterized by a
A. few large firms and no barriers to entry. B. few large firms and substantial barriers to entry. C. large number of firms and no barriers to entry. D. large number of firms and substantial barriers to entry.