Multiple Choice
Deflation refers to a situation where
A) the price level falls; it could be caused by a shift of AD to the left.
B) the price level falls; it could be caused by a decrease in aggregate supply.
C) the rate of inflation falls; it could be caused by a shift of AS to the right.
D) the rate of inflation rises; it could be caused by a decrease in aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: When aggregate demand declines, wage rates may
Q17: Suppose that real domestic output in an
Q19: An economy is employing 2 units of
Q23: The aggregate supply curve (short run) is
Q24: The long-run aggregate supply analysis assumes that<br>A)input
Q36: The aggregate supply curve (short run) becomes
Q51: Macroeconomic equilibrium in the short run always
Q184: The economy experiences an increase in the
Q261: Per-unit production cost is<br>A) real output divided
Q305: The interest-rate effect suggests that<br>A) a decrease