Multiple Choice
If real GDP is less than potential GDP,then the ________ and the price level ________.
A) aggregate demand curve shifts leftward;rises
B) aggregate demand curve shifts rightward;falls
C) aggregate supply curve shifts leftward;rises
D) aggregate supply curve shifts rightward;falls
E) amount of potential GDP increases;falls
Correct Answer:

Verified
Correct Answer:
Verified
Q197: Cost-push inflation might initially result from<br>A)an increase
Q198: When potential GDP increases,the potential GDP line
Q199: A change in any component of aggregate
Q200: Changes in which of the following shifts
Q201: An increase in government expenditure on goods
Q203: An inflationary gap is created when<br>A)real GDP
Q204: A fall in the price level brings
Q205: An increase in the price level leads
Q206: _ decreases aggregate supply.<br>A)An increase in potential
Q207: Moving along the aggregate supply curve,<br>A)the quantity