In the short run, the dominant effect of deficit reduction causes an
a. outward shift of the aggregate supply curve.
b. inward shift of the aggregate supply curve.
c. outward shift of the aggregate demand curve.
d. inward shift of the aggregate demand curve.
d
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Exceptions to the prohibition against cartels exist for which of the following?
a. ocean shipping rates b. various agricultural products such as milk and oranges c. transoceanic airline routes d. cardboard box manufacturers e. a through c f. a through d
Which of the following games will have a solution in mixed strategies?
a. A price-fixing game b. A Prisoner's dilemma c. A drafting game used by racing cars. d. A product choice game with asymmetric profits
Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,
a. the long-run market supply curve will be upward sloping. b. the long-run market supply curve will be perfectly elastic. c. in the long run firms will suffer economic losses, leading them to exit the industry. d. the number of firms will decrease, and the market will become a monopoly.
The law of demand states that price and quantity demanded are
A) directly related, ceteris paribus. B) inversely related, ceteris paribus. C) independent. D) positively related, ceteris paribus.