A decrease in aggregate demand causes a decrease in ________ only in the short run,but causes a decrease in ________ in both the short run and the long run.
A) the price level; real GDP
B) real GDP; real GDP
C) the price level; the price level
D) real GDP; the price level
Correct Answer:
Verified
Q195: After an unexpected _ in the price
Q196: Interest rates in the economy have risen.How
Q197: On average,in the recessions since 1950,it has
Q198: The long-run adjustment to a negative supply
Q199: Long-run macroeconomic equilibrium occurs when the aggregate
Q201: In the long run
A)GDP = potential GDP.
B)unemployment
Q202: At a long-run macroeconomic equilibrium,real GDP is
Q203: Suppose a recession occurs as a result
Q204: Stagflation occurs when short-run aggregate supply decreases.
Q205: Why does the short-run aggregate supply curve
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