Suppose aggregate demand in the economy sharply declines. Mainstream economists say that the price level (at least for a time) will _______ and real output will _________
A. decrease; remain constant
B. increase; remain constant
C. remain constant; decrease
D. remain constant; increase
C. remain constant; decrease
Economics
You might also like to view...
See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the price elasticity of demand?
A) 0 B) -5/9 C) -1 D) -9/5 E) none of the above
Economics
The marginal utility of good X is 6 and the marginal utility of good Y is 18. The price of good X is $2. The price of good Y must be ________ if the consumer is optimizing her utility
A) $5 B) $6 C) $18 D) $15
Economics