Answered: If policymakers decrease aggregate…

If policymakers decrease aggregate demand, then in the short run the price level Answer falls and unemployment rises. and unemployment fall. and unemployment rise. rises and unemployment falls.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 11E

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Question

If policymakers decrease aggregate demand, then in the short run the price level

Answer

falls and unemployment rises.

and unemployment fall.

and unemployment rise.

rises and unemployment falls.

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