Given the slope of the aggregate demand curve, real GDP demanded will decrease when
a. real income rises.
b. real income falls.
c. the price level falls.
d. the price level rises.
d
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When looking at data for unemployment and inflation from the 1970s there is evidence to support the short run Phillips Curve.
Answer the following statement true (T) or false (F)
From the end of the World War II, the debt-GDP ratio in the United States fell almost without interruption to a low point in ________, which marked the beginning of a long-run climb
A) 1955 B) 1962 C) 1974 D) 1984 E) 1990
If Colombia has a comparative advantage over Mexico in the production of coffee, then:
A. Colombia has the ability to produce more coffee than Mexico with the same resources. B. Colombia probably sells coffee to Mexico. C. Mexico should trade coffee to Colombia. D. Mexico is more productive at making coffee than Colombia.
Using the quantity equation, if the velocity of money grows at 5 percent, the money supply grows at 10 percent, and real GDP grows at 4 percent, then the inflation rate will be
A) 19 percent. B) 15 percent. C) 11 percent. D) 6 percent.