SophiaPretty

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    Strayer,Devery,Harvard University
    Mar-1995 - Mar-2002

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    WalMart
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Category > Business & Finance Posted 01 Sep 2017 My Price 6.00

When businesses are pessimistic

When businesses are pessimistic about the future and invest less than they had planned,then:

a. In the short-run, the firms hire fewer workers, overall consumption in the economy falls,aggregate demand falls, and the price level increases.

b. Over time (long-run), prices and nominal wages adjust downwards; this decreases the costs of production, and decreases the short-run aggregate supply.

c. In the long-run, the self-correcting mechanism results in a return to full-employment GDPbut at a higher price level.

d. All of the above.e. None of the above.

write reason for each option.

Answers

SophiaPretty
(5)
Status NEW Posted 01 Sep 2017 06:09 AM My Price 6.00

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