If policymakers decrease aggregate demand, then in the long run
a. prices will be lower and unemployment will be higher.
b. prices will be lower and unemployment will be unchanged.
c. prices and unemployment will be unchanged.
d. None of the above is correct.
b
Economics
You might also like to view...
Under rate of return regulation, a natural monopoly ________
A) has an incentive to inflate its costs B) has an incentive to deflate its costs and capture more of the market C) makes an economic profit D) sets price equal to marginal cost
Economics
Along a straight-line downward-sloping demand curve, elasticity is
a. constant, but its value cannot be determined without measurement b. constant and equal to an absolute value of one c. greater at higher prices d. greater at lower prices e. greater in the middle
Economics