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Author Question: A decrease in the price level is likely to decrease the aggregate amount of output supplied in the ... (Read 112 times)

bcretired

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Question 1

An increase in aggregate demand when the economy is operating ________ is likely to result in an increase in the overall price level and ________ in output.


◦ below full capacity; a decrease
◦ below full capacity; no increase
◦ at full capacity; a decrease
◦ at full capacity; no increase

Question 2

A decrease in the price level is likely to decrease the aggregate amount of output supplied in the short run because


◦ interest rate is high in the short run.
◦ wages are sticky in the short run.
◦ wages change in the short run.
◦ the aggregate supply curve is vertical in the short run.


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Marked as best answer by bcretired on Apr 19, 2019

Amiracle

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bcretired

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Reply 2 on: Apr 19, 2019
Wow, this really help


zacnyjessica

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Reply 3 on: Yesterday
Gracias!

 

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