Which of the following changes in the aggregate demand and aggregate supply curves in likely to result in stagflation?
A) The aggregate demand curve shifts to the left when the economy is in the classical range of the aggregate supply curve
B) The aggregate demand curve shifts to the right in classical range
C) The aggregate demand curve shifts to the right when the economy is in the Keynesian range of the aggregate supply curve
D) The aggregate supply curve shifts left
E) The aggregate supply curve shifts right
Ans: D) The aggregate supply curve shifts left
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Which of the following statements is false?
A) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals may not be made better off as a result of international trade, both countries may be made better off overall. D) Not all individuals in both countries are made better off as a result of international trade.
Seasonal variations can be incorporated into a time-series model in a number of different ways, including:
a. ratio-to-trend method b. use of dummy variables c. root mean squared error method d. a and b only e. a, b, and c