Quiz_245 - 88 . A B Priceswillrise C D Outpu

Quiz_245 - 88 . A B Priceswillrise C D Outpu

This preview shows page 1 - 2 out of 4 pages.

88) Suppose the economy is at full employment and firms become more pessimistic about the futureprofitability of new investment. Which of the following will happen in the short run?A) Unemployment will rise.B) Prices will rise.C) The aggregate demand curve will shift to the right.D) Output will rise.Answer: A88)Diff: 2Page Ref: 809-810/435-436Topic: Expansion in the Short RunLearning Outcome: Macro 14: Identify different types and measures of unemployment and discuss its causesAACSB: Reflective Thinking89) Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which ofthe following will occur because of the automatic mechanism adjusting the economy back topotential GDP?89)Diff: 3Page Ref: 809-810/435-436Topic: Expansion in the Long RunLearning Outcome: Macro 6: Explain the aggregate supply-aggregate demand modelAACSB: Reflective Thinking90) Why does the short-run aggregate supply curve shift to the left in the long run, following anincrease in aggregate demand?90)Diff: 2Page Ref: 809-810/435-436Topic: Long-Run Macroeconomic EquilibriumLearning Outcome: Macro 7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflationAACSB: Reflective Thinking
Background image
Image of page 2

You've reached the end of your free preview.

Want to read all 4 pages?

  • Three '11
  • various
  • Unemployment, AACSB, Page Ref, Reflective thinking, aggregate supply-aggregate demand, Interstate 90, Supply-Aggregate Demand Model

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture