Author Question: A short run equilibrium: a. Will be at a greater output level than the natural level of real ... (Read 90 times)

lracut11 · **on:** Jun 30, 2018

A short run equilibrium:
a. Will be at a greater output level than the natural level of real output.
b. Will be at the natural level of real output.
c. Will be at a smaller output level than the natural level of real output.
d. Short-run equilibrium could be at any of the above levels of output.

Question 2

Suppose the Congress enacts a 5 percent decrease in annual military expenditures. Other things equal, this can be associated with:
a. a change in the slope of the aggregate demand curve.
b. a leftward shift of the aggregate demand curve.
c. a rightward shift of the aggregate demand curve.
d. a movement down along the aggregate demand curve.
e. a movement up along the aggregate demand curve.