Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
You might also like to view...
Firms engage in odd pricing when they charge prices that appear to be less than they really are; for example, charging a price of $4.95 instead of $5.00 and $.99 instead of $1.00
How have researchers tried to determine whether odd pricing is successful in convincing consumers that odd prices are less than they really are?
Examples of off-balance-sheet activities include
A) trading activities. B) extending loans to depositors. C) borrowing from other banks. D) selling negotiable CDs.
A good is nonexcludable if the benefits derived from consuming it cannot be easily denied to those who do not purchase it
a. True b. False
A spending shock
a. causes unemployment and inflation to change in the same direction b. results in a movement along the AD curve c. shifts the AS curve d. first affects the economy through the money market e. causes equilibrium GDP to change at each price level