A country experiences a decrease in the price level and a rise in real output. What combination of the changes in aggregate demand and supply would generate this outcome?
An increase in aggregate supply but no change in aggregate demand.
A decrease in both aggregate demand and aggregate supply.
A decrease in aggregate supply.
A decrease in aggregate demand but no change in aggregate supply.
Complete the following statement: At below full employment equilibrium: ......... GDP exceeds .......GDP and there is …… gap.
real, potential, recessionary
real, potential, natural rate of unemployment
potential, real, recessionary
potential, real, inflationary