As real GDP increases, ceteris paribus, the slope of the aggregate supply curve
A. decreases.
B. increases.
C. is always zero.
D. remains unchanged.
Answer: B
You might also like to view...
Why might an oil cartel's effectiveness be undermined during a recession but strengthened during an economic boom?
What will be an ideal response?
Which of the following is a problem associated with gross domestic product (GDP) as a measure of social welfare? a. It includes many nonmarket activities
b. It takes into account the value of only those goods which are widely used. c. It takes into account the cost of environmental damage caused by pollution. d. It includes intermediate goods as a separate entry. e. It excludes the value of leisure time.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and reserve-related (central bank) transactions become more positive (or less negative). b. The quantity of real loanable funds per time period falls and reserve-related (central bank) transactions remain the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Marcia is a white 23-year-old female, and Joan is a black 23-year-old female. Both Marcia and Joan were economics majors, and they graduated from the same college in the same year with the same GPA. Marcia and Joan both got identical jobs at a brokerage firm after graduating from college. They both work equally hard. Marcia earns $38,000 a year, and Joan earns $30,000 a year. Select the best
explanation for this wage difference. a. Marcia has less human capital than Joan. b. Marcia receives a compensating wage differential that Joan does not. c. Joan has been discriminated against because she is black. d. Marcia has been discriminated against because she is white.