Without a change in target inflation, anything that shifts the aggregate demand curve to the right will cause:
A. a temporary increase in output.
B. an increase in output in the long run.
C. a permanent reduction in inflation.
D. a temporary decrease in inflation.
Answer: A
You might also like to view...
"The federal budget is required by law to balance." Is the previous statement correct or incorrect?
What will be an ideal response?
Monopolies may earn zero economic profit because of
a. zero marginal cost b. barriers to entry c. patents and copyright laws d. economies of scale e. government price regulation
Asset price bubbles are not sustainable because:
A. they do not reflect an increase in the real productive value of the asset. B. invariably the government steps in to burst the asset price bubble. C. investors eventually run out of assets with which to purchase the good. D. people realize that leverage really doesn't work mathematically.
Which of the following would cause an increase in aggregate supply?
A) An increase in factors of production B) An increase in foreign demand for goods C) A decrease in productivity D) An increase in government spending