As the maximum output level (real GDP) is approached, the aggregate supply curve
A. becomes flatter.
B. is downward sloping.
C. becomes steeper.
D. remains unchanged.
C. becomes steeper.
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A bundle of goods that costs $1 in the U.S. is worth 5 units in Country A's currency. If Country A's GDP in its own currency is 5,000,000 units, Country A's GDP in purchasing power parity-adjusted dollars is ________
A) $1,000,000 B) $50,000,000 C) $2,500,000 D) $3,000,000
Which of the following is a monetary policy goal?
i. keeping the inflation rate low ii. attaining maximum employment iii. keeping the long-term interest rate at a moderate level A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Suppose that the elasticity of demand for a product is 0.5. What will happen to total revenue as a firm increases the price?
A. Total revenue will increase. B. Total revenue will decrease. C. Total revenue will stay the same. D. It cannot be determined from the information provided.
When one country can produce a product at a lower cost in terms of other goods, that country is said to have
A. a comparative advantage. B. a productive advantage. C. an absolute advantage. D. an unfair advantage.