Multiple Choice
If there is no policy action in an economy that is producing an output below its full-employment level, then
A) the output returns to full-employment level quickly.
B) the price level declines slowly.
C) the price level rises quickly.
D) the output stays below full-employment for a short period, then rises quickly.
Correct Answer:

Verified
Correct Answer:
Verified
Q31: A rise in the real interest rate,
Q32: If there is a significant drop in
Q33: The_ believe that it takes a long
Q34: Describe what monetary policymakers should do if
Q35: A rise in the incomes of foreign
Q37: Macroeconomic models from the 1950s and 1960s
Q38: Suppose another breakthrough in computer technology greatly
Q39: Consumption spending is about_ of aggregate demand.<br>A)2/3<br>B)1/2<br>C)3/4<br>D)5/6
Q40: The unemployment rate reflecting normal job turnover
Q41: Suppose ATM costs increased because of additional