What impact will a negative demand shock have on the main measures of economic performance?
A.
Real GDP will increase, inflation will increase, and unemployment will decrease
B.
Real GDP will decrease, inflation will decrease, and unemployment will increase
C.
Real GDP will decrease, inflation will increase, and unemployment will increase
D.
Real GDP will increase, inflation will decrease, and unemployment will decrease
B.
Real GDP will decrease, inflation will decrease, and unemployment will increase
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The short-run equilibrium of the firm under monopolistic competition has excess capacity
a. True b. False Indicate whether the statement is true or false
The NCAA rule governing the limits on the amount of a scholarship a college can offer an athlete is an effective price floor
Indicate whether the statement is true or false
A movement down the aggregate supply curve is caused by a(n)
A. decrease in aggregate supply. B. decrease in the price level. C. increase in aggregate supply. D. increase in the price level.