Multiple Choice
A new government policy to build more public infrastructure like roads, transit and sewers
A) decreases short-run aggregate supply.
B) increases aggregate quantity demanded.
C) decreases aggregate quantity demanded.
D) increases aggregate demand.
E) decreases aggregate demand.
Correct Answer:

Verified
Correct Answer:
Verified
Q236: Negative and positive demand shocks cannot happen
Q237: The short run is a period of
Q238: Scientific discoveries allow for technological change as
Q239: Human capital decisions affect both long-run and
Q240: The long run is a period of
Q242: An increase in savings causes the interest
Q243: Rising input prices shift both SAS and
Q244: A positive supply shock in macroeconomics is
Q245: The exchange rate is the price of
Q246: Rising average prices and increased unemployment could