If an unanticipated decrease in aggregate demand results in an output below the economy's long-run capacity, long-run equilibrium will eventually be restored by
a. an increase in the rate of inflation.
b. lower resource prices and lower real interest rates.
c. higher resource prices and higher real interest rates.
d. a decrease in the natural rate of unemployment.
B
Economics
You might also like to view...
Laffer curve
What will be an ideal response?
Economics
The main goal of the Fed is to control ______ and the money supply through its monetary policy instruments.
a. short-run real interest rates b. short-run nominal interest rates c. long-run real interest rates d. long-run nominal interest rates
Economics