A negative demand shock
a. shifts the AD curve to the right
b. decreases real GDP and increases the price level in the short run
c. is the result of an increase in money demand
d. results in a movement down and to the right along the AD curve
e. decreases both real GDP and the price level in the short run
E
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The owner of a productive resource is most usefully thought of as the person who
A) can appropriate the income from its use. B) can use it most efficiently. C) is willing to pay the most to obtain it. D) possesses legal title.
The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $1 per pound, the price of cake is $2 per slice and Homer has $9 to spend on cookies and cake
Homer will consume ________ pounds of cookies and ________ slices of cake. A) 5; 2 B) 2; 5 C) 3; 3 D) None of the above answers is correct.