How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve.
B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve.
C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve.
D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.
Ans: D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.
You might also like to view...
Demand is inelastic if
A) a large change in quantity demanded results in a small change in price. B) the quantity demanded is very responsive to changes in price. C) the price elasticity of demand is less than 1. D) the price elasticity of demand is greater than 1.
Other things being equal, a fall in the price of Coca?Cola will increase the quantity of Coca?Cola demanded
a. True b. False Indicate whether the statement is true or false