Which of the following statements about aggregate supply is correct?
A) Shifts in aggregate supply can cause stagflation
B) Shifts in aggregate supply can cause a fall in output and a rise in prices
C) Shifts in aggregate supply can cause a recession
D) All of the above
Correct Answer:
Verified
Q36: Most economists believe that in the short
Q37: Another reason for the downward slope of
Q38: Okun's law looks at the relationship between:
A)inflation
Q39: The aggregate-demand curve shows:
A)the quantity of goods
Q40: In a recession, real GDP falls and:
A)unemployment
Q42: If people's expectations about future price levels
Q43: Keynes attempted to explain:
A)short-run economic fluctuations and
Q44: The upward slope of the aggregate-supply curve
Q45: The new Keynesian sticky-price theory states that
Q46: When production costs rise, in the short
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