When households cut back on their spending, then in the short run we tend to see the price level ______ and equilibrium output __________. fall; fall rise; fall rise; rise fall; rise

When households cut back on their spending, then in the short run we tend to see the price level and equilibrium output ____. fall; fall rise; fall rise; rise fall; rise

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 48CTQ: If households decide to save a larger portion of their income, what effect would this have on the...

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Question

When households cut back on their spending, then in the short run we tend to see the price level ______ and equilibrium output __________.

fall; fall

rise; fall

rise; rise

fall; rise

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