8. Assume that (a) the price level is flexibleupward but not downward and (b) theeconomy is currently operating at itsfull-employment output. Other thingsequal, how will each of the followingaffect the equilibrium price level andequilibrium level of real output in theshort run? L012.6a. An increase in aggregate demand.b. A decrease in aggregate supply, withno change in aggregate demand.c. Equal increases in aggregate demandand aggregate supply.d. A decrease in aggregate demand.e. An increase in aggregate demand thatexceeds an increase in aggregasupply.

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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? LO12.6 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.

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? LO12.6 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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