Author Question: A simultaneous increase in both unemployment and inflation is most likely to be the result of a(n): ... (Read 223 times)

charchew · **on:** Jun 30, 2018

A simultaneous increase in both unemployment and inflation is most likely to be the result of a(n):
a. increase in long-run aggregate supply.
b. increase in short-run aggregate supply.
c. decrease in the aggregate demand.
d. simultaneous outward shift of the aggregate demand and supply curves.
e. decrease in the short-run aggregate supply.

Question 2

An economic study concludes that an investment tax credit would increase business investment next year. This is an example of:
a. normative analysis.
b. positive analysis.
c. negative economic analysis.
d. the fallacy of composition.