C theaggregate supplycurveisflat d theaggregate

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Unformatted text preview: esults from an increase 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: C Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills Refer to the information provided in Figure 14.5 below to answer the questions that follow. Figure 14.5 4) Refer to 14.5. If aggregate demand shifts while aggregate supply is stable, the relationship between the price level Figure and the unemployment rate is represented in Panel A) A. B) B. C) C. D) D. Answer: A Diff: 1 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective T...
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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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