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- Download: http://solutionzip.com/downloads/assume-that-a-the-price-level-solution/
- Question 4
- Assume that (a) the price level is flexible upward but not downward and (b) the economy is currently operating at its full-employment output. Other things equal, how will each of the following affect the equilibrium price level and equilibrium level of real output in the short run?
- a. An increase in aggregate demand.
- b. A decrease in aggregate supply, with no change in aggregate demand.
- c. Equal increases in aggregate demand and aggregate supply.
- d. A decrease in aggregate demand.
- e. An increase in aggregate demand that exceeds an increase in aggregate supply.
- Download: http://solutionzip.com/downloads/assume-that-a-the-price-level-solution/
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