Suppose the economy is in a recessionary gap. In the absence of any policy intervention, the short-run aggregate supply curve will eventually shift:
A) down (to the right) , causing the price level to fall and output to rise.
B) down (to the right) , causing the price level to fall and output to fall.
C) down (to the right) , causing the price level to rise and output to fall.
D) up (to the left) , causing the price level to fall and output to rise.
Correct Answer:
Verified
Q128: If potential output is less than actual
Q129: If potential output is unknown:
A)we can still
Q130: In 1979, the Federal Reserve decided to
Q131: The rapid development of Internet technologies during
Q132: An increase in aggregate demand in the
Q134: If potential output exceeds actual output, eventually:
A)input
Q135: Refer to the graph shown. The economy
Q136: At the intersection of the short-run aggregate
Q137: An inflationary gap exists when:
A)aggregate demand exceeds
Q138: If actual output exceeds potential output, the
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