QUESTION 9 Price Level AS P1 P2 AD AD' Y2 Yi Real National Income The graph above refers to a decrease in consumer confidence due to a recent decrease in the rate of economic growth. This shifts consumption from Y1 to Y2. Which of the following is likely to result? cyclical unemployment will decrease inflationary pressures will be greater ○ the economy will experience lower economic growth ◇ input prices will rise in the short run

QUESTION 9 Price Level AS P1 P2 AD AD' Y2 Yi Real National Income The graph above refers to a decrease in consumer confidence due to a recent decrease in the rate of economic growth. This shifts consumption from Y1 to Y2. Which of the following is likely to result? cyclical unemployment will decrease inflationary pressures will be greater ○ the economy will experience lower economic growth ◇ input prices will rise in the short run

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 11SCQ: What impact would a decrease in the size of the labor force have on GDP and the puce level according...

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