When quantity demanded decreases in response to a change in price:
a. the demand curve shifts to the right.
b. the demand curve shifts to the left.
c. there is a movement down along the demand curve.
d. there is a movement up along the demand curve.
Question 2
The short-run aggregate supply curve is drawn with:
a. the price level on the vertical axis and real GDP on the horizontal axis.
b. the price level on the vertical axis and nominal GDP on the horizontal axis.
c. nominal GDP on the vertical axis and real GDP on the horizontal axis.
d. real GDP on the horizontal axis and the rate of unemployment on the vertical axis.
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