Multiple Choice
Scenario 14-2. The economy is in long-run equilibrium. Suddenly, due to corporate scandals, international tensions, and the loss of confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time.
-Refer to Scenario 14-2. In the short-run, which of the following are consistent with the aggregate demand and aggregate supply theory?
A) The price level and real GDP both increase.
B) The price level and real GDP both decrease.
C) The price level rises, and real GDP falls
D) The price level falls, and real PDP rises.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: What happens when the price level rises?<br>A)
Q49: Which of the following best explains an
Q53: In which of the following situations would
Q55: Scenario 14-1. The economy is in long-run
Q58: Which of the following best describes what
Q99: Suppose the economy is in long-run equilibrium.
Q121: Assuming that a is positive, how are
Q166: If the government increased the money supply
Q168: What are the effects of a decrease
Q192: Which of the following would cause prices