Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
B) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
D) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
C
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According to some economists, the private sector is more efficient than the public sector mainly because:
A. the private sector has a clear test of performance: profit and loss. B. wages, salaries, and fringe benefits are higher in the private sector. C. worker turnover is higher in the public sector. D. of extensive negative externalities in the public sector.
All of the following actions are potential rule -of-reason violations except which one?
A) a firm's agreement with a customer about the markets in which the customer is allowed to resell the product B) a firm's agreement with a customer about the resale price of its product C) a tying sale with a customer D) an agreement with a competitor firm to divide the market