Multiple Choice
Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to a decrease in the aggregate demand curve would be a:
A) movement upward along the short-run aggregate supply curve.
B) movement upward along the long-run aggregate supply curve.
C) downward shift in the short-run aggregate supply curve.
D) movement downward along the short-run aggregate supply curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q16: Exhibit 14A-3 Macro AD-AS Model <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9287/.jpg" alt="Exhibit
Q17: Beginning from a position of long-run equilibrium,
Q18: The long-run aggregate supply curve is:<br>A) upward-sloping.<br>B)
Q19: Exhibit 14A-6 Aggregate demand and supply model <img
Q23: In an economy where nominal incomes adjust
Q24: Exhibit 14A-1 Aggregate demand and supply model <img
Q25: Suppose that the economy is in a
Q26: A decrease in nominal incomes causes a
Q79: One reason for the short-run aggregate supply
Q123: A short-run aggregate supply curve (SRAS)