Answer b diff2 topic theshort run relationship

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Unformatted text preview: tual AACSB: Reflective Thinking 14.4 The 1 M ul ti pl e C 1) h o i c e The unemployment rate rises if A) the demand for labor increases. B) aggregate C) output increases. the supply of D) labor increases. aggregate demand increases. Answer: C Diff: 1 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 2) What sequence of events results from a decrease in aggregate demand? A) The price level falls, inventories decline, firms respond by increasing output and employment. B) The price level falls, inventories increase, firms respond by reducing output and employment. C) The price level rises, inventories decline, firms respond by increasing output and employment. D) The price level rises, inventories increase, firms respond by increasing output and employment. Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 3) What sequence of events r...
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This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.

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