When aggregate demand shifts right along the short-run aggregate supply curve, unemployment
a. falls, so there are upward pressures on wages and prices.
b. falls, so there are downward pressures on wages and prices.
c. rises, so there are upward pressures on wages and prices.
d. rises, so there are downward pressures on wages and prices.
a
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In the above figure, if output is 10 units, then the total deadweight loss is
A) $5. B) $10. C) $20. D) $60.
When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve
A) total planned real expenditure will be lower than actual real GDP, and the price level will increase. B) there will be no price level change. C) there will be pressures that will lead to a shift of either the aggregate demand or the long run aggregate supply curves. D) total planned real expenditures will exceed actual real GDP, and the price level will increase.