Suppose the price level falls. The result is that the:
a. aggregate supply curve would shift to the right.
b. aggregate supply curve would shift to the left.
c. general price level would rise causing a movement up the aggregate demand curve.
d. aggregate demand curve would slope downward because of the real balances effect.
d
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Which statement is true?
A. The poverty line is raised each year. B. The poverty line is lowered each year. C. The poverty line stays the same from one year to the next. D. None of these statements are true.
If the price buyers pay rises by the full amount of the tax, the burden...
What will be an ideal response?
The "broken window fallacy"
a. explains why inflation is so high.
b. is a justification for the government to print more money.
c. is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
d. has nothing to do with public policy.
In Table 9.4, Market 1 would be in equilibrium if buyers believed lemons accounted for:
A. about 90.91% of the market. B. about 74.5% of the market. C. about 63.25% of the market. D. about 57.65% of the market.