Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment.Which of the following will happen in the short run?
A) Output will rise.
B) Prices will rise.
C) Unemployment will rise.
D) The aggregate demand curve will shift to the right.
E) Net exports will rise.
Correct Answer:
Verified
Q182: Figure 9.6 Q183: Which of the following is considered a Q184: Ceteris paribus, in the long run, a Q185: When the price of oil falls unexpectedly, Q186: An increase in aggregate demand in the Q188: A rapid increase in the price of Q189: In the long run,
A)total unemployment = frictional
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