Because the prices of final goods and services tend to increase more quickly than the prices of inputs, the short run aggregate supply curve is:
A. upward sloping.
B. downward sloping.
C. perfectly elastic.
D. perfectly inelastic.
A. upward sloping.
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A researcher finds that for an economy, the nominal GDP in the year 2012 equals the nominal GDP in the year 2013. He also finds that the output of the economy has been the same over the two years. A situation like this is possible only if:
A) the annual inflation rate in the economy is negative. B) the annual interest rate in the economy is negative. C) the annual interest rate in the economy is zero percent. D) the annual inflation rate in the economy is zero percent.
GDP is an imperfect measure of well-being because
a. it does not measure standards of living. b. it does not include household production. c. it ignores many of the costs of production. d. it excludes many goods produced within markets. e. both b and c.
All of the following actions are potential rule -of-reason violations except which one?
A) a firm's agreement with a customer about the markets in which the customer is allowed to resell the product B) a firm's agreement with a customer about the resale price of its product C) a tying sale with a customer D) an agreement with a competitor firm to divide the market
Which of the following is an example of a positive economic statement?
A) The unemployment rate last month was 5.4 percent. B) The unemployment rate last month was too high. C) Because of the high unemployment rate last month the government should increase government spending. D) The unemployment rate should be measured differently because it doesn't include students who can't find jobs.