Solved

If a Positive Permanent Supply Shock Were to Occur, the Resulting

Question 31

Multiple Choice

If a positive permanent supply shock were to occur, the resulting equilibrium would occur at a _______ level of output and _______ price level.

A) higher; higher
B) lower; lower
C) higher; lower
D) lower; higher

Related Questions

Q26: If the prices of goods and services

Q27: When the prices of final goods and

Q28: The quantity measure in the aggregate demand

Q29: Assuming an economy starts in long-run equilibrium,

Q30: When the economy is creating less output

Q32: Higher interest rates cause:<br>A) firms to invest

Q33: During a recession, analysts at the CBO

Q34: A drop in government spending would cause

Q35: When the long-run aggregate supply curve shifts

Q36: In the short run, the aggregate supply