If the economy experiences a(n) ________, inflation will rise and real GDP will fall
A) negative supply shock B) decrease in aggregate demand
C) increase in short-run aggregate supply D) positive supply shock
A
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If a seller can sell 5 units at $8 each but can sell 6 units only by lowering the price to $7 (and must sell all units at the same price), the marginal revenue from selling the 6th unit is
A) $42. B) $7.50. C) $7. D) $2. E) none of the above.
For the recessions in the United States since the 1950s
A) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. B) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. C) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins. D) cyclical unemployment has been non-existent.
Because the price level does not affect the long-run determinants of real GDP, the long-run aggregate-supply curve is upward-sloping.
a. true b. false
Which of the following sequences leads to a shortage of gasoline?
a. Gas price is fixed at PC; S1 shifts to S2; a gap develops between QS and QD.
b. Gas price is fixed at PC; a gap develops between QS and QD; S1 shifts to S2.
c. S1 shifts to S2; gas price is fixed at PC; a gap develops between QS and QD.
d. S1 shifts to S2; a gap develops between QS and QD; gas price is fixed at PC.