Multiple Choice
A positive demand shock will result from:
A) a sudden increase in nominal wages.
B) an increase in the potential GDP.
C) a move by the Federal Reserve to lower the interest rate.
D) consumers and firms becoming more pessimistic.
Correct Answer:
Verified
Correct Answer:
Verified
Q180: Use the following to answer questions:<br>Figure: Inflationary
Q181: Suppose that the economy is in long-run
Q182: Suppose the equilibrium aggregate price level is
Q183: According to the wealth effect, when prices
Q184: The short-run aggregate supply curve will shift
Q186: An increase in Social Security benefits will
Q187: The higher the existing physical capital stock,
Q188: An advantage of stabilizing macroeconomic policy over
Q189: Which statement is FALSE?<br>A) A rise in
Q190: Stagflation may result from a(n):<br>A) increase in