Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?

A) Output will rise.
B) Prices will rise.
C) Unemployment will rise.
D) The aggregate demand curve will shift to the right.

Answer: C

Economics

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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.Time cleaning windows (hours/day)Total number of windows cleaned0017211314416517 What is the lowest price per window that would induce John to spend at least one hour per day cleaning windows?

A. $1 B. $7 C. $3 D. $2

Economics

Lorenz curves for the United States in 1967 and 2016 show

A. a changed relationship between unemployment and inflation from 1967 to 2016. B. a trade-off between unemployment and inflation in 1967 but no such trade-off in 2016. C. a changed relationship between job openings and the unemployment rate from 1967 to 2016. D. increased income inequality from 1967 to 2016.

Economics