Solved

Suppose the Economy Is at a Short-Run Equilibrium GDP That

Question 110

Multiple Choice

Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP.Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?


A) Output will decrease.
B) Prices will increase.
C) Unemployment will rise.
D) Short-run aggregate supply will shift to the right.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q105: Which of the following is considered a

Q106: Suppose the economy is at full employment

Q107: Figure 13-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 13-3

Q108: If the short-run aggregate supply increases by

Q109: Figure 13-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 13-1

Q111: President Trump has proposed lowering income taxes

Q112: Figure 13-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 13-3

Q113: Which of the following models focuses on

Q114: Monetarism is a school of thought put

Q115: Stagflation usually results from<br>A)a supply shock.<br>B)a decrease