A a b b c c d d answer a diff1 topic theshort run

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Unformatted text preview: hinking 5) As the ment rate increases in response to the economy moving away from capacity output, the aggregate price unemploy level A) is stable. B) falls. C) rises at an D) increasing rate. rises at a declining rate. Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 6) If aggregate demand changes while aggregate supply is stable, output and the unemployment rate are A) positively B) related. not related in C) the short run. not related D) neither in the long run nor in the short run. negatively related. Answer: D Diff: 1 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 7) If the aggregate supply is vertical, an (a) ________ in the price level ________ unemployment rate. A) decrease; B) increases increase; C) doesn't change decrease; D) decreases increase; increases Answer: B Diff: 1 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 8) Changes in the price level don...
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