QUESTION 9 Price Level AS P1 P2 AD AD' Y2 Yi Real National Income The graph above refers to a decrease in consumer confidence due to a recent decrease in the rate of economic growth. This shifts consumption from Y1 to Y2. Which of the following is likely to result? cyclical unemployment will decrease inflationary pressures will be greater ○ the economy will experience lower economic growth ◇ input prices will rise in the short run
QUESTION 9 Price Level AS P1 P2 AD AD' Y2 Yi Real National Income The graph above refers to a decrease in consumer confidence due to a recent decrease in the rate of economic growth. This shifts consumption from Y1 to Y2. Which of the following is likely to result? cyclical unemployment will decrease inflationary pressures will be greater ○ the economy will experience lower economic growth ◇ input prices will rise in the short run
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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