Solved

Suppose the Economy Is at Full Employment, and Energy Prices

Question 50

Multiple Choice

Suppose the economy is at full employment, and energy prices spike. In the short run, output will _____; in the long run, output will _____.

A) decrease; remain unchanged
B) decrease; increase
C) remain unchanged; decrease
D) remain unchanged; increase

Related Questions

Q45: Cost-push inflation occurs because of a shift

Q46: In the short run, the aggregate supply

Q47: Which factor is NOT a determinant of

Q48: (Figure: Determining SRAS Shifts) If there are

Q49: What would cause inflation and employment to

Q51: An increase in taxes shifts the aggregate

Q52: The long-run aggregate supply curve is vertical

Q53: The concept of the vertical long-run aggregate

Q54: What happens if business expectations improve?<br>A) Aggregate

Q55: The long-run aggregate supply curve uses the