Suppose that an increase in aggregate demand causes an unplanned ...

[jc611]

Suppose that an increase in aggregate demand causes an unplanned depletion in business inventories. Which of the following situations will result from this?
 a. The economy moves up the short-run Phillips curve.
  b. The short-run Phillips curve shifts to the right.
  c. The short-run Phillips curve shifts to the left.
  d. The aggregate supply curve shifts to the left.
  e. The economy moves down the short-run Phillips curve.

Question 2

If a huge percentage change in price leads to a small percentage change in quantity demanded, then demand is said to be elastic.
 a. True
  b. False
  Indicate whether the statement is true or false

[meow1234]

Answer to Question 1

a

Answer to Question 2

False

[jc611]

YES! Correct, THANKS for helping me on my review

[kthug]

Thanks for the timely response, appreciate it