Multiple Choice
In the long run, a decrease in aggregate demand, all other things unchanged, will cause the price level to
A) increase and potential output to increase.
B) decrease and potential output to decrease.
C) increase and potential output to remain stable.
D) decrease and potential output to remain stable.
Correct Answer:
Verified
Correct Answer:
Verified
Q103: Use the following to answer questions .<br>Exhibit:
Q104: A change in the price level produces
Q105: The long-run aggregate supply curve is vertical
Q106: Use the following to answer questions .<br>Exhibit:
Q107: Use the following to answer questions .<br>Exhibit:
Q109: In the long run, the price level
Q110: Aggregate demand is the total value of
Q111: What is the difference between the short
Q112: To eliminate a recessionary gap, policy-makers may
Q113: Use the following to answer questions .<br>Exhibit: