Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Which of the following statements is true about a simple circular flow model?
A) Producers are buyers in the factors market. B) Producers are neither buyers nor sellers in the product market. C) Households are neither buyers nor sellers in the input market. D) Households are sellers in the product market.
Forecasts by the Congressional Budget Office show spending on Social Security, Medicare, and Medicaid rising from 10
1 percent of GDP in 2015 to ________ percent of GDP in 2090, and by 2090 the federal government will be spending, as a fraction of GDP, ________ on these three programs as it currently spends on all programs combined. A) 16.2 percent; half as much B) 19.8 percent; nearly as much C) 16.2 percent; nearly as much D) 19.8 percent; half as much