When the price level falls
A. aggregate demand shifts to the left.
B. all prices of individual goods and services decrease.
C. aggregate demand shifts to the right.
D. aggregate quantity demanded increases.
D. aggregate quantity demanded increases.
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If real gross domestic product (GDP) for a particular year is $5 trillion and the GDP price index for that year is 136, the nominal gross domestic product (GDP) for that year is _____
a. $3.7 trillion b. $4 trillion c. $6.8 trillion d. $27 trillion e. $68 trillion
During a recession
A. exports tend to fall. B. investment tends to fall. C. imports tend to rise. D. consumption tends to rise.
The monetary expansion process from an open market operation continues until
A) required reserves are eliminated. B) the Federal Reserve takes actions to stop the process. C) the discount rate is lower than market interest rates. D) excess bank reserves are eliminated.
The law of diminishing returns begins first to affect a firm's short-run cost structure when
A) average variable cost begins to increase. B) marginal cost begins to increase. C) average cost begins to increase. D) average fixed cost begins to decrease.