Which of the following will most likely occur in the short run if long-run equilibrium is disturbed by an unanticipated decrease in aggregate demand?

a. a decrease in output and a higher price level
b. an increase in output and a higher price level
c. a decrease in output and a lower price level
d. an increase in output, while prices remain unchanged

C

Economics

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A consumer is likely to avoid adverse selection and get a high-quality lunch at

A) a snack bar at a traveling carnival. B) a vendor who parks her cart at a different location every noon. C) a restaurant in the center of a business district. D) a restaurant located next door to Disneyland.

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Differences in marginal revenue products among workers can help explain the presence of wage differentials

a. True b. False

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