Everything Else Held Constant,if Aggregate Output Is to the Right

question 127

Multiple Choice

Everything else held constant,if aggregate output is to the right of the IS curve,then there is an excess ________ of goods which will cause aggregate output to ________.

• A)supply;fall
• B)supply;rise
• C)demand;fall
• D)demand;rise

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Definitions:

Association

An organized group of people who share a common interest, purpose, or profession.

Causation

A relationship where one event (the cause) directly leads to the occurrence of another event (the effect).

Ceteris Paribus

A Latin term used in economics to mean "all other things being equal," isolating one economic variable to analyze its effect.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the economy ought to be like, focusing on policy prescriptions and outcomes.