Question

 Question 29

 Recessions occur at irregular intervals and are almost impossible to predict with much accuracy.

 True

 False

 Question 30

 When prices are falling, economists say that there is

 a. an inverted inflation.

 b. disinflation.

 c. deflation.

 d. a contraction.

 Question 31

 The price level rises in the short run if

 a. aggregate demand or aggregate supply shifts right.

 b. aggregate demand shifts left or aggregate supply shifts right.

 c. aggregate demand shifts right or aggregate supply shifts left.

 d. aggregate demand or aggregate supply shifts right.

 Question 32

 In the short run, a decrease in wage rates, ceteris poribus, shifts the

 a. AD curve to the left, causing equilibrium price level to fall and equilibrium Real GDP to decrease. 

 b. AD curve to the right, causing equilibrium price level to rise and equilibrium Real GDP to increase.

 c. SRAS curve to the left, causing equilibrium price level to rise and equilibrium Real GDP to decrease.

 d. SRAS curve to the right, causing equilibrium price level to fall and equilibrium Real GDP to increase.

Answer 1

1.True.Recession occurs at irregular intervals and are almost impossible to predict with much accuracy.

2.Deflation.According to Economics, Deflation mean decrease or reduction in the general price level of goods and services.(c)

3.Aggregate demand curve shift to right and supply curve to left. (c)

4.Ceteris paribus, in the short run a decrease in wage rates, shifts the SRAS curve to the right, causing equilibrium price level to fall and equilibrium Real GDP to increase.(d).