A Common Assumption Among Macroeconomists Is That When Real GDP

question 6

Multiple Choice

A common assumption among macroeconomists is that when real GDP is less than potential output, factor prices adjust and the

• A)AS curve shifts to the left fairly rapidly.
• B)AS curve shifts to the right very rapidly.
• C)AS curve shifts to the right only very slowly.
• D)AD curve shifts to the left rapidly.
• E)none of the above -- the AS curve remains unchanged.

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Definitions:

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A theoretical and empirical approach in sociology that considers the environment, evolution, and life cycles of organizations.