An economy starts at long-run equilibrium where AD and SRAS intersect at potential GDP, if interest rates rise, then (choose all that apply) a. the economy is in an inflationary gap b. real gdp rises c.cyclical unemployment rises d.aggregate demand decreases

An economy starts at long-run equilibrium where AD and SRAS intersect at potential GDP, if interest rates rise, then (choose all that apply) a. the economy is in an inflationary gap b. real gdp rises c.cyclical unemployment rises d.aggregate demand decreases

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 4CQQ

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Question

An economy starts at long-run equilibrium
where AD and SRAS intersect at potential
GDP, if interest rates rise, then (choose all that
apply)
a. the economy is in an inflationary gap
b. real gdp rises
c.cyclical unemployment rises
d.aggregate demand decreases

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