If labor costs rise at the same time that the federal government decreases its purchases, in the short run
A) aggregate output and the price level will both increase.
B) aggregate output will increase, but the price level will fall.
C) aggregate output and the price level will both fall.
D) aggregate output will fall, but the price level may either increase or decrease.
D
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What is the current equilibrium price level and real GDP for the economy illustrated in the figure above? Does this economy have an inflationary gap, a recessionary gap, or neither? As it adjusts toward full employment, which curve shifts?
What is the equilibrium real GDP and price level that the economy will ultimately reach?
Price discrimination refers to:
A. selling a given product for different prices at two different points in time. B. any price above that which is equal to a minimum average total cost. C. the selling of a given product at different prices to different customers that do not reflect cost differences. D. the difference between the prices a purely competitive seller and a purely monopolistic seller would charge.