When the actual price level in an economy turns out to be lower than that expected in the short run, _____
a. businesses cut back production
b. the potential output level decreases
c. the aggregate supply curve shifts leftward
d. the aggregate supply curve shifts rightward
e. an expansionary gap develops
a
Economics
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Which of the following production functions exhibits constant returns to scale?
A) q = KL B) q = KL0.5 C) q = K + L D) q = log(KL)
Economics
A government-imposed price floor has what effect on efficiency?
A. Consumer surplus increases. B. There is little dead weight loss. C. Consumer and producer surplus increases. D. Producer surplus increases.
Economics