In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then
A) the level of economic activity rises.
B) a recessionary gap occurs.
C) there is no change in real GDP and the price level.
D) an inflationary gap occurs.
B
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If the current account balance is -$100 billion and the capital and financial account balance is $80 billion, then the official settlement account balance is
A) -$20 billion. B) $20 billion. C) always 0. D) impossible to determine with the information given.
Use the following figures to answer the next question.
A decline in aggregate expenditures from AE2 to AE1 resulting from the real-balances, interest-rate, and foreign purchases effects would be depicted as a ________.
A. shift of aggregate demand from AD2 to AD1 B. shift of aggregate demand from AD1 to AD2 C. movement from A to C along aggregate demand curve AD1 D. movement from C to A along aggregate demand curve AD1