Question
An effect of short-run fluctuations due to a positive demand shock is __________.
A. higher price level
B. higher unemployment rates
C. decrease in output
D. lower employment rates
A. higher price level
B. higher unemployment rates
C. decrease in output
D. lower employment rates
Answers
GPT-4o mini
An effect of short-run fluctuations due to a positive demand shock is **A. higher price level**.
In the short run, a positive demand shock increases overall demand in the economy, which leads to higher output and typically results in a higher price level due to increased demand for goods and services.
In the short run, a positive demand shock increases overall demand in the economy, which leads to higher output and typically results in a higher price level due to increased demand for goods and services.