Other things equal, a decrease in the price level will:
A. shift the aggregate supply curve to the left.
B. shift the aggregate demand curve to the left.
C. cause a movement up a short-run aggregate supply curve.
D. cause a movement down an aggregate supply curve.
D. cause a movement down an aggregate supply curve.
You might also like to view...
The income elasticity of demand for all goods taken together must be
A) zero. B) -1. C) +1. D) between 0 and 1.
In the 1870s,
a. cotton prices were declining. b. the Deep South became a food importing region. c. an increasing percentage of small farms specialized in cotton. d. black farmers devoted more of their land to cotton than white farmers. e. All of the above.
Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:
a. if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable. b. that changes in the money stock do not affect output or prices. c. the Fed will miss its money supply targets and make the economy worse. d. monetary policy can stimulate aggregate demand, but it cannot affect inflation.
Which of the following will not generally be true of a monopolistic competitor operating in the long run? a. It will be earning normal profits
b. Its marginal revenue = marginal cost. c. Its average total cost will be minimized. d. Its price will be greater than its marginal cost.