If the public believes that the commitment to a nominal anchor is not credible, the effect of a negative aggregate demand shock is for ________
A) short-run aggregate supply to shift down
B) short-run aggregate supply to remain unchanged
C) short-run aggregate supply to shift up
D) inflation, but not economic activity, to decrease
C
Economics
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Which of the following is an example of an automatic stabilizer?
A) Congress increases the tax rate during an expansion. B) Congress authorizes spending increases during a recession. C) More unemployment benefits are paid during a recession. D) Welfare payments decrease during a recession.
Economics
An increase in market price, given a fixed number of firms, causes market supply to shift to the right.
Answer the following statement true (T) or false (F)
Economics