The effect of a shift in the aggregate demand curve due to an increase in consumer confidence will be:
A. an increase in both prices and output in the short run.
B. a decrease in prices only in the long run; output will remain the same.
C. a decrease in both prices and output in the short run.
D. an increase in output only in the long run; prices will remain the same.
A. an increase in both prices and output in the short run.
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Marginal tax rates supply reliable measures of tax progressiveness.
A. True B. False C. Uncertain
Assuming the economy in the graph shown is currently at equilibrium A, if the government wanted to enact a policy it would likely enact:
A. expansionary fiscal policy in an effort to move aggregate demand to the right.
B. contractionary fiscal policy in an effort to move aggregate demand to the left.
C. expansionary fiscal policy in an effort to move aggregate demand to the left.
D. contractionary fiscal policy in an effort to move aggregate demand to the right.
During the late 1980s and early 1990s, most of the budget deficits were accounted for by
a. the decline of foreign investment in the United States. b. the downturn in the economy. c. deliberate fiscal policy changes. d. All of the above are correct.
The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed
a. True b. False Indicate whether the statement is true or false