Multiple Choice
The long-run aggregate supply curve is vertical at $18 trillion but the short-run aggregate supply curve intersects the aggregate demand curve at $19 trillion. We know that
A) the economy is producing below full employment in the short run, and will adjust by hiring more workers, thus decreasing unemployment.
B) the price level is too high. The long-run equilibrium will occur with a lower price level.
C) adjustments will occur so that the long-run aggregate supply equals $19 trillion.
D) adjustments will occur so that the short-run aggregate supply eventually intersects the aggregate demand curve at $16 trillion.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -From the data
Q34: If the money wage rate increases, the
Q35: In November, 2012, U.S. lawmakers were faced
Q36: According to the intertemporal substitution effect, a
Q37: In the United States, of the following
Q39: If the full-employment quantity of labor increases,
Q40: What happens to the aggregate demand curve
Q41: Which of the following decreases aggregate demand?<br>A)
Q42: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q43: For movements along the long-run aggregate supply