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In the short run, policy that changes aggregate demand changes Answer both unemployment and the price level. neither unemployment nor the price level. only unemployment. only the price level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In the short run, policy that changes aggregate demand changes

Answer

both unemployment and the price level.

neither unemployment nor the price level.

only unemployment.

only the price level.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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