Limited access

Upgrade to access all content for this subject

Suppose a poll showed business owners felt very upbeat about the coming business year and felt that opportunities were growing even though the current unemployment rate of $7\%$ was higher than the natural rate of $5\%$. Which of the following would be an expected economic behavior?

A

Aggregate demand would drop.

B

Price level would increase and there would be more output.

C

The aggregate supply curve would shift left.

D

Price level would decrease and there would be lower incomes.

E

Interest rates would decrease and there would be less borrowing.

Select an assignment template