Multiple Choice
Refer to the figure. Assuming this market is representative of the economy as a whole, a positive demand shock will
A) increase both the price level and the quantity of output produced.
B) increase output but leave prices unchanged.
C) lower the price level but leave output unchanged.
D) raise the price level but leave output unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
Q151: The opportunity cost of investment is a
Q152: Real GDP is preferred to nominal GDP
Q153: Inflation refers to an increase in the
Q154: When prices are inflexible, the economy will
Q155: Economists need different models of the economy
Q157: The average amount of time between price
Q158: The overall behavior of the economy<br>A) is
Q159: Suppose that real GDP increases by 5
Q160: Shocks occur when actual events do not
Q161: If consumers become pessimistic, the economy is