An unanticipated increase in aggregate demand will cause firms to hire more workers in the short-run. That action should reduce the economy's unemployment rate below its natural rate. However, as aggregate demand increases the inflation rate will increase. This joint action would result in an up...
From an initial long-run equilibrium, an increase in aggregate demand that causes short-run aggregate supply to decrease will most likely result in long-run equilibrium with output:A. at potential GDP and a lower price level.B. at potential GDP and a higher price level.C. higher than potent...
An increase in government spending causes an increase in aggregate demand (i.e., causes the aggregate demand curve to shift right). As a result, an increase in government spending causes real GDP to rise and unemployment to fall. Choice "d" is incorrect. Real GDP will rise, not fall. ...
A change in aggregate demand will cause a change in the growth rate of the economy in the short run if ___. In the short-run in periods of low inflation, what effect could occur with an increase in aggregate demand ...
In monetarism, what will lead to an increase in aggregate demand? According to the quantity theory of money, how would a 5% increase in the money supply affect the price of goods and services, all else equal? In monetarism, what will lead to an increase in aggrega...
百度试题 结果1 题目A recession can be caused by: a. A decrease in aggregate demand. b. An increase in aggregate demand. c. Both "d" and "a". d. A decrease in aggregate supply.相关知识点: 试题来源: 解析 C 反馈 收藏
An increase in the aggregate demand for goods and services has a larger impact on output ___ and a larger impact on the price level ___. A. in the short run, in the long run B. in the long run, in the short run C. in the short run, also in the short run D. in the long...
This will cause an increase in price level and so inflationary pressure will start to build. If aggregate demand continues to rise as most firms reach their maximum potential output the effect of an increase of aggregate demand will consist mainly on prices. However this can be prevented ...
multiplierThe impact of exports on domestic aggregate demandThe lag in the impact of changes in the interest rate targetDiagrammatic Analysis of Fiscal and Monetary PoliciesThe IS, IRT Curves and the Determination of Output: A CaveatBut What about the Monetary Sector and Its Money Demand and ...
Within the framework of the aggregate demand/aggregate supply model, an increase in short run aggregate supply will cause: a. Real output to decline and the price level to rise. b. Real output to decline and the price level to fall. c. Real output to expand and the price level to rise...