m price level will fall, and the equilibrium level of GDP will fall. B. Aggregate demand will not change because consumer expectations are not a determinant of aggregate demand. C. Aggregate demand will fall, the equilibrium price
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Consumer expectations about future income have become negative. How will this affect aggregate
demand and equilibrium in the short run?A. Aggregate demand will fall, the
equilibrium price level will fall, and the equilibrium level ofGDP will fall.B. Aggregate demand will not change because consumer expectations are not a determinant of aggregate demand.
C. Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
D. Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
E. Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
QUESTION 12
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When
aggregate supply shifts to the left, the equilibrium price level _____________ and theunemployment rate ______________ in the short run.A. falls; rises
B. falls; falls
C. falls; remains constant
D. rises; falls
E. rises; rises
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