A contractionary supply shock would most likely result in
A) an increase in aggregate demand
B) an increase in national income
C) an increase in GDP
D) a decrease in the general price level
E) a decrease in employment
Answer: E) a decrease in employment
Economics
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Differentiate between an oligopoly and a monopolistic competition on the basis of the number of firms and the degree of product differentiation
What will be an ideal response?
Economics
In the short-run
A) the aggregate supply curve is upward sloping. B) real GDP is always equal to potential GDP. C) the money wage rate can change. D) the price level does not change.
Economics