If the expected future inflation rate decreases, then
A) aggregate demand increases.
B) short-run aggregate supply increases.
C) aggregate demand decreases.
D) long-run aggregate supply decreases.
C
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Suppose wages increase but employment decreases. These changes most likely were caused by
A. a decrease in labor demand. B. an increase in labor supply. C. a decrease in labor supply. D. an increase in labor demand.
If the market price in a competitive market is below the minimum of average variable cost, the firm will shut down
Indicate whether the statement is true or false
What is the most likely effect of the development of cell phones on the pay phone industry?
a. the own price elasticity of pay phones increases b. the own price elasticity of pay phones decreases c. the price elasticity of home phones does not change d. none of the above
Since measurable factors such as years of experience and years of education explain less than half of the variation in wages, ability, effort, and chance must play a significant role in determining wages
a. True b. False Indicate whether the statement is true or false