Multiple Choice
If weak aggregate demand is pushing the economy into recession, which of the following must be true?
A) The economy is at an equilibrium that is on the long-run aggregate supply curve.
B) The economy is at an equilibrium that is on the long-run Phillips curve.
C) The economy is at an equilibrium that is not on the long-run Phillips curve.
D) Contractionary monetary policies will push the economy back to the long-run Phillips curve.
E) Expansionary fiscal policy will be required to restore equilibrium.
Correct Answer:
Verified
Related Questions
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Q93: Growth in aggregate demand will
A)cause deflation.
B)increase unemployment.
C)move
Q94: The long-run Phillips curve is _ than
