Q1. If the economy is in short-run disequilibrium below full employment, the most likely explanation is that: A) money wage rates have decreased. B) long-run aggregate supply has decreased. C) aggregate demand has decreased.
Q2. If the economy is in short-run equilibrium above the full-employment level of output, what is the most likely adjustment that will restore the economy to long-run equilibrium? A) The price level for final goods and services will decrease. B) Aggregate demand will shift down and to the left. C) Money wages and resource prices will increase.
Q3. An economy has been producing at its full-employment level of output and the price level has been stable. Businesses then begin experiencing unintended decreases in their inventory levels. What does this most likely imply about the short-run outlook for economic growth and inflation? Economic growth Inflation A) Increasing Decreasing B) Increasing Increasing C) Decreasing Increasing
|