Multiple Choice
In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production. As a result, economists warned that the economy would
A) suffer an inflationary gap.
B) see a decrease in aggregate demand and an increase in long-run aggregate supply.
C) experience stagflation.
D) see an increase in potential GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: If the economy is in long run
Q7: Which of the following is TRUE about
Q8: The U.S. aggregate demand curve shifts leftward
Q9: In a short-run macroeconomic equilibrium, real GDP
Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q12: One reason that the aggregate demand curve
Q13: The short-run aggregate supply curve shifts because
Q14: Compare the policy prescriptions of Keynesian, Classical,
Q15: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q16: An increase in the quantity of money