Solved

Suppose a Shift in Aggregate Demand Creates an Economic Contraction

Question 177

Multiple Choice

Suppose a shift in aggregate demand creates an economic contraction. If policymakers can respond with sufficient speed and precision, how can they offset the initial shift?


A) by shifting the aggregate supply right
B) by shifting the aggregate supply left
C) by shifting the aggregate demand right
D) by shifting the aggregate demand left

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q172: What is the effect of increases in

Q173: What did NOT happen during the onset

Q174: Figure 14-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt="Figure 14-4

Q175: Which statement best describes the aggregate demand

Q176: Scenario 14-2<br>The economy is in long-run equilibrium.

Q178: What did Keynes believe caused recessions and

Q179: What did Keynes believe that economies experiencing

Q180: What is an important determinant of the

Q181: What does real GDP measure?<br>A) the dollar

Q182: Discuss what economists believe is different about