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.Management Sciences
A. The exchange-rate effect
B. The wealth effect
C. The classical dichotomy/monetary neutrality effect
D. The interest-rate effect
Related Mcqs:
- In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?
- A. shift the short-run aggregate supply curve to the left B. shift the aggregate demand curve to the right C. shift the short-run aggregate supply curve to the right D. shift the aggregate demand curve to the left...
- Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
- A. Is vertical because an equal change in all prices and wages leaves output unaffected B. is positively sloped because price expectations and wages tend to be fixed is the long run C. shifts right when the government raises the minimum wage D. shifts left when the natural rate of unemployment falls...
- The natural rate of output is the amount of real GDP produced ?
- A. When the economy is at the natural rate of unemployment B. When the economy is at the natural rate of investment C. When the economy is at the natural rate of aggregate demand D. When there is no no unemployment...
- Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?
- A. Price fall; output rises B. Price fall; output falls C. Price rise; output fall D. Price rise; output rise...
- Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?
- A. Price rise; output falls B. Price fall; output rises C. Price rise; output rises D. Price fall; output falls...
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