Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) shift the aggregate demand curve to the left.
B) move the economy down along a stationary aggregate demand curve.
C) shift the aggregate demand curve to the right.
D) move the economy up along a stationary aggregate demand curve.
C
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The long-run average cost curve is U-shaped because of which of the following?
A) decreasing marginal returns as more labor is hired B) constant fixed costs as output is increased C) economies and diseconomies of scale D) increasing marginal returns as more labor is hired E) decreasing average fixed costs as output is increased
Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of a bushel of apples is:
A. 3/20 watermelons.
B. 1/20 watermelons.
C. 1/40 watermelons.
D. 1/30 watermelons.
An income tax increase in the Virgin Islands will cause the Islands'
a. consumption curve to shift downward b. consumption curve to shift upward c. investment curve to shift upward d. investment curve to shift downward e. economy to move to the right along its current investment curve
Other things the same, what happens to the price level and quantity of output when an adverse shift in the short run aggregate supply curve occurs?