Cost-push inflation is characterized by a(n):
A. Increase in aggregate supply and a decrease in aggregate demand
B. Increase in aggregate demand and no change in aggregate supply
C. Decrease in aggregate supply and no change in aggregate demand
D. Decrease in both aggregate supply and aggregate demand
C. Decrease in aggregate supply and no change in aggregate demand
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Which of the following offers an explanation for the Leontief paradox?
I. Leontief's assumption that U.S. and foreign technologies are the same is incorrect. II. Leontief did not incorporate land and other resources. III. Leontief did not distinguish between skilled and unskilled labor. a. I, II, and III b. I and II c. I and III d. I
Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential