Ceteris paribus, in the short run following a decrease in the rate of growth in aggregate demand, we would expect to see an increase in the rate of unemployment and a decrease in the rate of inflation
Indicate whether the statement is true or false
TRUE
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Graphically, all else constant, a decrease in the price of labor would be illustrated by:
A) a parallel shift of the isocost line in toward the origin. B) rotating the isocost line away from the origin along the labor axis. C) a parallel shift of the isocost line away from the origin. D) rotating the isocost line in toward the origin along the capital axis.
The short-run aggregate supply curve ______.
a. slopes upward b. is perfectly vertical c. slopes downward d. is perfectly horizontal
In Zimbabwe, at the height of the feedback loop:
A. prices were increasing by 7.6 billion percent per month. B. real GDP was increasing by 7.6 billion percent per month. C. the money supply was increasing by 7.6 billion percent per month. D. the velocity of money was increasing by 7.6 billion percent per month.
Increased government spending is an example of:
A. expansionary monetary policy. B. contractionary monetary policy. C. contractionary fiscal policy. D. expansionary fiscal policy.