Multiple Choice
-The figure illustrates aggregate demand and aggregate supply in Sparta. Which of the following events will decrease Sparta's real GDP in the short run?
A) a fall in resource prices
B) a decrease in taxes
C) a decrease in government expenditure
D) an increase in investment
Correct Answer:
Verified
Correct Answer:
Verified
Q442: The short- run aggregate supply curve is
Q443: As the price level falls and other
Q444: A fall in the expected future inflation
Q445: In the short run, an increase in
Q446: Aggregate supply describes the behavior of<br>A) households.<br>B)
Q448: An increase in the quantity of capital
Q449: A lower price level combined with a
Q450: According to the intertemporal substitution effect, a
Q451: Full- employment equilibrium occurs when<br>A) potential GDP
Q452: A decrease in expected future income<br>A) increases