Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A shock that decreases input prices but doesn't increase the full-employment level of output will result in: A. Greater output in the short run and

A shock that decreases input prices but doesn't increase the full-employment level of output will result in:

A. Greater output in the short run and lower price level in the long run

B. Greater output in the short run and higher price level in the long run

C. An increase in aggregate demand

D. Greater output in the short run and no change in the price level in the long run

E. A lower price level in the short run and higher output in the long run

Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuing The Earth, Economics, Ecology, Ethics

Authors: Herman E Daly, Kenneth N Townsend

2nd Edition

0262540681, 9780262540681

More Books

Students also viewed these Economics questions

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago