UNIT 03 / NATIONAL INCOME AND PRICE DETERMINATION

Changes in the AD–AS Model in the Short Run3.6 test

100 questions with explanations after each answer.

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QUESTION 01 / 100Easy

In the short run, a positive (rightward) shock to aggregate demand will cause real output, employment, and the price level to

Select one answerAOutput and employment to fall while the price level risesBRemain unchanged — only the long-run equilibrium changesCOutput, employment, and the price level all riseDAll fallEOutput and employment to rise while the price level falls

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Question 1