Multiple Choice
Which statement best describes the effects of a fall in the price level?
A) Dollars are worth more, so people spend more.
B) Dollars are worth more, so people spend less.
C) Dollars are worth less, so people spend more.
D) Dollars are worth less, so people spend less.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Which statement best characterizes the long-run aggregate-supply
Q51: Which of the following shifts the short-run,
Q52: In addition to the price level, what
Q53: Which statement characterizes business cycles?<br>A) They are
Q54: If speculators bid up the value of
Q56: Review the sticky-wage theory of the short-run
Q57: Suppose the Canadian economy is in long-run
Q58: What happens to prices and output when
Q59: According to the sticky-price theory, which statement
Q60: When would the long-run aggregate-supply curve shift