Multiple Choice
If aggregate demand exceeds potential output:
A) an economy's resources are over-utilized.
B) an economy's resources are under-utilized.
C) an economy's resources are fully employed.
D) the pattern of resource use cannot be determined without knowing short-run aggregate supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: An economy's AD function is Y =
Q8: The interest-rate effect is one of the
Q9: An AD curve is:<br>A) vertical if full
Q10: Table 5.4: The following aggregate demand and
Q11: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Figure
Q13: Higher oil price will shift the aggregate
Q14: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Table
Q15: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Figure
Q16: Assume that the natural rate of unemployment
Q17: The substitution effect suggests that a decrease