Posted by Joy on Thursday, April 5, 2012 at 8:49pm.
I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct.
1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease in ______ in both the short run and the long run.
a)real GDP; the price level
b)the price level; the price level
c)real GDP; real GDP
d)the price level; real GDP
*I believe after reading that the answer is d*
2. Workers and firms both expect that prices will be 3% higher next year than they are this year. As a result,
a)aggregate demand will increase by 3%
b)the purchasing power of wages will rise if wages increase by 3%
c)the short-run aggregate supply curve will shift to the left as wages increase
d)workers will be willing to take lower wages next year
*I believe the answer is c.
3) A decrease in aggregate demand results in a(n)______ in the _____.
a)recession; long run
b)recession; short run
c)expansion; short run
d)expansion; long run
I believe it may be b because there will be less money during a short time but I am unsure.
Thanks for your help
Answer this Question
More Related Questions
- economics - I am completely stuck on these two questions. I have read my chapter...
- Economics: Am I right? - I am completely stuck on these two questions. I have ...
- economics - am completely stuck on these three questions. I have read my ...
- Econ - I am completely stuck on these three questions. I have read my chapter, ...
- Economics - Concern about international crisis has caused consumers to save ...
- economics - some study guide questions i am stumped on 1 uncertainty about the ...
- macroeconomics - Calculate the total change in aggregate demand because of an ...
- Economics - In the long run, what effect will a decrease in aggregate demand ...
- Economics - IF income was transferred from individuals with a low MPC to those ...
- economics - 3. Consumer spending on durables falls, draw a graph to analyze the ...