An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
Economics
You might also like to view...
With an increase in the demand for a good, if prices are not allowed to increase:
A) social surplus will be maintained at maximum. B) there will be no incentive for firms to increase the quantity supplied of the good. C) a surplus will occur in the market. D) there will be an increase in overall efficiency in the market.
Economics
Refer to the above figure. Economic profits for this firm are
A) negative and equal to P2bcP3. B) negative and equal to P1bcP2. C) positive and equal to P2bcP3. D) positive and equal to P1abP2.
Economics