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Subject - Economics:

Macroeconomics

MCQ - 40-4050

Question:

Suppose that the unemployment rate falls from 6 percent to 5 percent and the inflation rate falls from 3 percent to 2 percent. Which of the following best explains these trends?

  1. An increase in aggregate demand.
  2. A decrease in both aggregate demand and aggregate supply.
  3. An increase in both aggregate demand and aggregate supply.
  4. A decrease in both aggregate demand and aggregate supply.
  5. An increase in aggregate demand and a decrease in aggregate supply.

Correct Answer: D

Explanation:

If the unemployment rate and inflation rate are both falling, they are likely the result of an increase in AS (either SRAS or LRAS).

Record Performance

269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Suppose that the unemployment rate falls from 6 percent to 5 percent and the inflation rate falls from 3 percent to 2 percent. Which of the following .... ns these trends? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 40-4050.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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