Multiple Choice
If there is an excess demand situation in the economy at the current price level, then the:
A) price level will remain the same
B) economy must be operating on the flat section of the AS curve
C) price level will increase
D) price level will definitely decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q12: The components of aggregate expenditure that depend
Q13: As long as aggregate supply remains constant,
Q14: The business cycle follows a regular and
Q15: The aggregate-demand curve shows:<br>A)the quantity of goods
Q16: What causes shifts in the aggregate demand
Q18: For a given level of inflation, if
Q19: When the price level falls:<br>A)households try to
Q20: What are three alternative explanations for the
Q21: When firms cut back production:<br>A)they employ more
Q22: The long-run aggregate supply is called:<br>A)potential output<br>B)full-employment