Falling output, in the short run, could be due to:

A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.


Answer: B

Economics

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If fiscal policy implementation causes some crowding out, the ________ shift of the aggregate demand curve will be ________ than it would have been if no crowding out had occurred.

A. leftward; larger B. rightward; smaller C. rightward; larger D. leftward; smaller

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The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that

A) the demand curve for a monopoly is horizontal. B) consumers are ignorant of the effects of monopoly. C) the costs of production are the same whether the industry is perfectly competitive or a monopoly. D) elasticity of demand varies along the market demand curve.

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According to the loanable funds framework, if businesses see new opportunities to expand capacity by building new factories, the likely effect will be that:

What will be an ideal response?

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long term contracts are less likely when

What will be an ideal response?

Economics