Stagflation is the combination of--------. Select one: a. a recessionary gap and a falling price level b. no recessionary or expansionary gap, but a rising price level c. an expansionary gap and a falling price level d. a recessionary gap and a rising price level

Describe the mechanism by which demand creates its own supply.

Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand diagram. What is the equilibrium output and price level? If aggregate demand shifts right, what is equilibrium output? If aggregate demand shifts left, what is equilibrium output? In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?

Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What Impact would that have on GDP, unemployment, and inflation?

Describe the mechanism by which supply creates its osi1 demand.

If firms become more optimistic about the future of the economy and, at the same time, innovation in 3-D printing makes most workers more productive, what is the combined effect on output, employment, and the price-level?