Which of the following statements about economic fluctuations is true ?

Related Mcqs:

Which of the following would not cause a shift in the long-run aggregate supply curve ?

A. All of these answers shift the long-run aggregate supply curve B. An increase in the available capital C. An increase in the available labour D. An increase in price expectations...

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...

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...

Stagflation occurs when the economy experiences ?

A. rising prices and rising output B. rising prices and falling output C. falling prices and falling output D. falling prices and rising output...

Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?

A. Shift aggregate demand to the left B. Shift short run aggregate supply to the left C. shift aggregate demand to the right D. shift short-run aggregate supply to the right...