According to Keynesian economists, when the price level is constant, a downward shift in the aggregate expenditure curve is associated with
a. a rightward shift (increase) in the aggregate supply curve
b. a leftward shift (decrease) in the aggregate supply curve
c. a rightward shift (increase) in the aggregate supply curve
d. a leftward shift (decrease) in the aggregate supply curve
e. change in either the aggregate demand or aggregate supply curves
B
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According to the Congressional Budget Office, from the 1970s to the 2000s, the natural rate of unemployment in the United States:
A. remained relatively stable. B. increased. C. fell. D. fell to zero, and has since become negative.
If the price level in Great Britain increases from 102 to 105 (holding all else constant), real wealth ________ and there is a movement ________ along Great Britain's aggregate demand curve
A) decreases; upward B) increases; upward C) decreases; downward D) increases; downward
The elasticity of output with respect to capital
A) is the increase in output resulting from an increase in the capital stock. B) is the percentage increase in output resulting from a 1 % increase in the capital stock. C) is always greater than one. D) is the inverse of the elasticity of output with respect to labor.
Suppose the quantity of x is measured on the horizontal axis. If the income consumption curve is vertical, then the income elasticity of demand for x is
A) 0. B) 1. C) -1. D) There is not enough information to determine the income elasticity of demand for x.