If aggregate demand turns out to be higher than what was anticipated in an economy, then:
a. the economy experiences a contractionary gap.
b. the short-run equilibrium occurs at the potential output.
c. the short-run equilibrium occurs at an output level lower than potential output.
d. the short-run equilibrium occurs at an output level higher than potential output.
d
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In economics, the term "fixed costs" means
A) costs that do not vary with the level of output produced. B) implicit costs. C) costs incurred in the past that involve no implicit costs. D) costs that are never accounted for. E) opportunity costs.
An increase in real interest rates in the United States
a. discourages both U.S. and foreign residents from buying U.S. assets. b. encourages both U.S. and foreign residents to buy U.S. assets. c. encourages U.S. residents to buy U.S. assets, but discourages foreign residents from buying U.S. assets. d. encourages foreign residents to buy U.S. assets, but discourages U.S. residents from buying U.S. assets.