Author Question: Refer to Table 19-17. What is nominal GDP in 2016? A) 3,320 B) 3,690 C) 6,360 D) ... (Read 81 times)

Zoey63294 · **on:** Jun 29, 2018

Refer to Table 19-17. What is nominal GDP in 2016?

A) 3,320 B) 3,690 C) 6,360 D) 7,035

Question 2

When will an increase in aggregate demand not result in lower unemployment rates in the short run?

What will be an ideal response?

ttt030911 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

An increase in aggregate demand will not result in lower unemployment rates in the short run if there is no change in the level of output relative to potential GDP as a result of the increase in aggregate demand. If, for example, aggregate supply increases and potential GDP increases at the same time that aggregate demand is increasing, the unemployment rate (and inflation) may remain unchanged.