Author: Adden wafa

A. rising prices and rising output
B. rising prices and falling output
C. falling prices and falling output
D. falling prices and rising output

A. Price rise; output falls
B. Price fall; output rises
C. Price rise; output rises
D. Price fall; output falls

A. Price fall; output rises
B. Price fall; output falls
C. Price rise; output fall
D. Price rise; output rise

A. sticky-wage theory of the short-run aggregate supply curve
B. classical dichotomy theory of the short-run aggregate supply curve
C. misperceptions theory of the short-run aggregate supply curve
D. sticky-price theory of the short run aggregate supply curve

A. lower prices increase the value of money holding and consumers spending increase
B. lower prices decrease the value of money holding and consumers spending decrease
C. lower prices reduce money holding increase lending, interest rates fall and investment spending increase
D. lower prices increase money holding decrease lending, interest rates rise and investment spending falls

A. The exchange-rate effect
B. The wealth effect
C. The classical dichotomy/monetary neutrality effect
D. The interest-rate effect

A. lower prices increase money holdings decrease lending interest rates rise, and investment spending falls
B. lower prices increase the value of money holding and consumer spending increases
C. lower prices decrease the value of money holdings and consumers spending decreases
D. lower prices reduce money holdings increase lending interest rates fall, and investment spending increase

A. fail to respond to the adverse supply shock and allow the economy to adjust on its own.
B. respond to the adverse supply shock by decreasing aggregate demand which lower prices
C. respond to the adverse supply shock by decreasing short run aggregate supply
D. respond to the adverse supply shock by increasing aggregate demand, which further raises prices

A. People will reduce their price expectations and the short run aggregate supply will shift right
B. People will raise their price expectations and aggregate demand will shift left
C. People will raise their price expectations and the short run aggregate supply will shift left
D. People will reduce their price expectations and aggregate demand will shift right

A. a decrease in the money supply
B. a drop-in oil prices
C. an increase in government spending on military equipment
D. None of these answers
E. an increase in price expectations