Consider the nature of macroeconomic equilibrium. If, at a particular price level, aggregate output demanded is less than that supplied by producers, then
A) the aggregate demand curve will shift to the right, re- establishing an equilibrium.
B) the price level will decline toward its equilibrium value.
C) the aggregate supply curve will shift to the left, re- establishing an equilibrium.
D) the aggregate supply curve will shift to the right, re- establishing an equilibrium.
E) the price level will rise toward its equilibrium value.
Correct Answer:
Verified
Q25: The economy's AS curve will shift upward
Q26: Consider the basic AD/AS model. If their
Q27: Other things being equal, a rise in
Q28: If firms' unit costs remained constant as
Q29: Other things being equal, unit wage costs
Q31: Other things being equal, an exogenous rise
Q32: Consider the relationship between the AE curve
Q33: Other things being equal, when the price
Q34: All points on an economy's AD curve
A)show
Q35: The concept of "demand- determined output" requires
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents