Author Question: If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we ... (Read 109 times)

tatyanajohnson · **on:** Jun 30, 2018

If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that

A) demand decreased. B) supply increased.
C) demand increased. D) supply decreased.

Question 2

The longer is the interval between firms' price adjustments

A) the smaller the output effect of a given change in the money supply.
B) the longer the interval that the horizontal new Keynesian aggregate supply curve will remain in position.
C) the new Keynesian aggregate supply curve will become steeper.
D) the shorter the interval the horizontal new Keynesian aggregate supply curve will remain in position.