186) Stagflation usually results fromA) a decrease in aggregate demand.B) an increase in aggregate supply.C) an increase in aggregate demand.D) a supply shock.Answer: D186)Page Ref: 834/452Learning Outcome: Macro-7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflation.187) On average, in the recessions since 1950, it has taken ________ for real GDP to return to itscyclical peak.187)Page Ref: 835-836/453-454Learning Outcome: Macro-7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflation.188) On average, in the recessions since 1950, it has taken ________ for employment to return to itscyclical peak.188)Page Ref: 835-836/453-454Learning Outcome: Macro-7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflation.189) Long-run macroeconomic equilibrium occurs when aggregate demand ________ short-runaggregate supply and they ________ the long-run supply curve.189)Page Ref: 831/449Learning Outcome: Macro-6: Explain the aggregate supply-aggregate demand model.41
190) A decrease in aggregate demand results in a(n) ________ in the ________.A) expansion; long runB) recession; short runC) expansion; short runD) recession; long runAnswer: B190)Page Ref: 831/449Learning Outcome: Macro-7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflation.
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- Economics, Nontotient, aggregate supply-aggregate demand, 2.5 years, Supply-Aggregate Demand Model
