Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Output will increase. B) Short-run aggregate supply will shift to the left.
C) Unemployment will decline. D) Prices will decline.
B
Economics
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Melissa has an income of $240 a month to spend on tennis lessons and concert tickets. The price of a tennis lesson is $20, and the price of a concert ticket is $40. The slope of Melissa's budget line, with tennis lessons on the horizontal axis, is
A) -2. B) -0.5. C) -6. D) -12.
Economics
The law of supply states that price and quantity supplied are
A) inversely related, ceteris paribus. B) directly related, ceteris paribus. C) not related. D) fixed.
Economics