Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right.
B) Unemployment will rise.
C) Prices will rise.
D) Output will rise.
B
Economics
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Investment in safety at the firm level poses a prisoners' dilemma because
A) if each firm plays its dominant strategy, joint profits are maximized. B) if each firm plays its dominant strategy, joint profits are not maximized. C) neither firm has a dominant strategy. D) the Nash equilibrium is not achieved.
Economics
When the Lorenz curve moves closer to the diagonal, this shows:
a. the rich getting richer and the poor getting poorer. b. total income is rising. c. the distribution of income is becoming more even. d. the population is decreasing. e. the prices of goods are rising.
Economics