Refer to the graph above. If aggregate supply shifts from AS 1 to AS 2, then the price level will:
Increase and real domestic output will increase
Decrease and real domestic output will increase
Increase and real domestic output will decrease
Decrease and real domestic output will decrease
Increase and real domestic output will decrease
Economics
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Suppose you have borrowed money from a bank to buy a house. Which of the following will happen if the inflation rate unexpectedly rises?
A) You will be worse off. B) The real cost of your mortgage will rise. C) The bank's shareholders will be better off. D) You will be better off.
Economics
The price elasticity of demand for purses is measured in what units?
A) dollars B) purses C) dollars per purse D) The price elasticity of demand is a unitless measure.
Economics