Home / Questions / In the United States, because shipping plays such an important role in the economy, decli
In the United States, because shipping plays such an important role in the economy, declines in cargo volumes reflect
A) increases in short-run aggregate supply.
B) increases in inflation.
C) declines in aggregate demand.
D) decreases in long-run aggregate supply.
12) The dynamic aggregate demand and aggregate supply model assumes that potential GDP increases over time.
13) Inflation is generally the result of total spending growing faster than total production.
14) One factor which brought on the recession of 2007-2009 was the end of the housing bubble.
15) In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing slower than potential real GDP?
16) Explain how the aggregate demand and aggregate supply model can be made more dynamic.
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