A decrease in inflationary expectations that causes firms to decrease their prices shifts the
A. aggregate supply curve to the left.
B. aggregate demand curve to the left.
C. aggregate demand curve to the right.
D. aggregate supply curve to the right.
Answer: D
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Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result, the equilibrium price ________, and the equilibrium quantity ________
A) rises; increases B) falls; increases C) falls; decreases D) falls; does not change E) rises; does not change
If the expectations theory of the term structure is correct, would a reduction in the supply of thirty-year Treasury bonds affect their yields?
What will be an ideal response?
In the factor payments approach, owners of land receive
a. wages b. user fees c. rent d. interest e. profit
Which statement is true?
A. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for free trade. B. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for protection. C. Dollars are used for all international transactions. D. None of these statements are true.