As the aggregate demand curve shifts to the right, what happens to the price level and output? What do these changes imply happens to the inflation rate and the unemployment rate?
The price level and output rise. As the price level rises, the inflation rate is higher. As output is higher the unemployment rate is lower.
Economics
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The federal funds rate is:
A. higher than both the prime interest rate and the discount rate. B. lower than both the prime interest rate and the discount rate. C. higher than the prime interest rate but lower than the discount rate. D. lower than the prime interest rate but higher than the discount rate.
Economics
How can paying workers an above-market wage result in greater efficiency? What are the implications for the flexibility of wages?
What will be an ideal response?
Economics