A leftward shift in aggregate demand will cause a decrease in both output and price level if aggregate supply is
A. Vertical.
B. Horizontal.
C. Downward-sloping to the right.
D. Upward-sloping to the right.
Answer: D
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Financial intermediaries change the mix of output by transferring financial capital from savers to dissavers (borrowers).
Answer the following statement true (T) or false (F)
Exhibit 10-8 Aggregate demand and supply
In Exhibit 10-8, if aggregate demand shifts from AD1 to AD2,
A. real GDP will increase from $3.0 to $7.0, and the price level will remain the same. B. real GDP will increase from $3.0 to $4.0, and the price level will remain the same. C. real GDP and the price level will both remain the same. D. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
A. upward movement along the Phillips curve. B. downward movement along the Phillips curve. C. upward shift of the Phillips curve. D. downward shift of the Phillips curve.
Approximately what percentage of state spending goes to finance education?
A. 36. B. 44. C. 47. D. 53.