If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply rise.
b. Aggregate demand and aggregate supply fall.
c. Neither aggregate demand nor aggregate supply change.
d. Aggregate demand rises, and aggregate supply falls.
e. None of the above.
.B
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Since a monopoly can set any price it wants, it always makes a profit
Indicate whether the statement is true or false
A change in the discount rate is likely to occur
A) after a change in the Treasury bill rate. B) after a change in the Treasury bond rate. C) before a change in the federal funds rate. D) before a change in the inflation rate.
The downward slope of the demand for money curve reflects the fact that
A) people hold more of their wealth in the form of money as the price level rises. B) people hold more of their wealth in the form of money as the price level falls. C) people hold more of their wealth in the form of money as the interest rate rises. D) people hold more of their wealth in the form of money as the interest rate falls.
The biggest advantage of capitalism is that
a. It generates wealth with the help of government intervention b. Prices hinder in moving assets from high-value to low-value uses c. It forces involuntary exchanges d. It creates wealth by letting a person follow his or her own self-interest