If the actual price level is 165, but people had been expecting it to be 160, then
a. the quantity of output supplied rises, but only in the short run.
b. the quantity of output supplied rises in the short run and the long run.
c. the quantity of output supplied falls, but only in the short run.
d. the quantity of output supplied falls in the short run and the long run.
a
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Monetarists tend to think that the aggregate demand curve is
A) stable. B) vertical. C) horizontal. D) sensitive to changes in investment spending.
The trough of a contraction is
A) the point in time at which the level of national business activity reaches a minimum before expanding again. B) the point in time at which the level of national business activity reaches a maximum before contracting again. C) the rate at which the level of business activity is declining. D) an external shock that causes economic activity to decline.