Multiple Choice
Suppose workers become pessimistic about their future employment,which causes them to save more and spend less.If the economy is on the intermediate range of the aggregate supply curve,then:
A) both real GDP and the price level will fall.
B) real GDP will fall and the price level will rise.
C) real GDP will rise and the price level will fall.
D) real GDP and the price level will rise.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Gradual adjustment of prices and wages to
Q13: An increase in regulation will shift the
Q14: Suppose an increase in government spending stimulates
Q15: The aggregate demand curve is downward sloping.
Q17: Which of the following is a range
Q18: Which of the following will increase aggregate
Q19: Exhibit 14-6 Aggregate supply curve<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6120/.jpg"
Q27: If aggregate demand increases in the intermediate
Q72: According to classical theory, if the aggregate
Q128: How will an increase in the world