Author Question: Assume that the AD curve is held constant and short-run aggregate supply decreases. The result is ... (Read 65 times)

Coya19@aol.com · **on:** Jun 30, 2018

Assume that the AD curve is held constant and short-run aggregate supply decreases. The result is a(n):
a. increase in both equilibrium real GDP and the price level.
b. decrease in equilibrium real GDP and an increase in the price level.
c. decrease in both equilibrium real GDP and the price level.
d. decrease in equilibrium real GDP, while the price level remains fixed.
e. increase in the price level, while equilibrium real GDP remains fixed.

Question 2

Which of the following is an example of a normative statement?
a. Higher unemployment rates are common among young people.
b. Young people should learn how to prepare their own taxes.
c. Auto insurance rates are generally lower for younger
d. Persons under the age of 30 watch more movies than those over the age of 30.