Assume that the government decides to use fiscal or monetary policy to stimulate the economy and that this action comes as a surprise to most individuals and businesses. In the short run, the result will be
A) an increase in aggregate demand and a fall in the price level.
B) a decrease in aggregated demand and a rise in the price level.
C) a decrease in the average duration of unemployment and a decrease in the unemployment rate.
D) an increase in the average duration of unemployment and an increase in the unemployment rate.
C
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If you lived in Jamaica, you would know that Jamaican NNP less indirect business taxes in Jamaica equals Jamaican
a. GNP b. NNP c. personal income d. personal disposable income e. national income
If the number of Japanese yen a dollar buys falls, but neither country's price level changes, then the real exchange rate
a. depreciates which causes U.S. net exports to increase. b. depreciates which causes U.S. net exports to decrease. c. appreciates which causes U.S. net exports to increase. d. appreciates, which causes U.S. net exports to decrease.