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

Economics

You might also like to view...

Large shareholders can sometimes influence a corporation's decisions without making efforts to replace its management

Indicate whether the statement is true or false

Economics

Which of the following is not a barrier to entry for monopoly?

A. a patent B. government licensing C. large economies of scale D. a large number of existing firms in a market

Economics

The budget deficit decreases during economic booms and increases during recessions.

Answer the following statement true (T) or false (F)

Economics

In an open economy, the government budget deficit tends to.

a. attract foreign capital. b. be less important than the current account deficit. c. crowd out private investment. d. crowd out imports. e. depreciate the currency.

Economics