Multiple Choice
Scenario 14-1
The economy is in long-run equilibrium. Suddenly, due to improved international relations, a boom experienced by a major trading partner, and the increased confidence of policymakers, citizens become more optimistic about the future and stay this way for a long time.
-Refer to the Scenario 14-1. Initially, which curve shifts in which direction?
A) AD shifts right.
B) AD shifts left.
C) Short-run AS shifts right.
D) Short-run AS shifts left.
Correct Answer:
Verified
Correct Answer:
Verified
Q138: According to the sticky-wage theory, which statement
Q139: Below are pairs of GDP growth rates
Q140: Which statement best characterizes the aggregate-demand curve?<br>A)
Q141: What are the variables on the vertical
Q142: Some economists argue that at low levels
Q144: Why is the long-run aggregate-supply curve vertical?<br>A)
Q145: Suppose there was an economic contraction caused
Q146: Which government action will shift the aggregate
Q147: What changes are likely to happen in
Q148: What does the economy experience during a