If there are sticky wages, and the price level is greater than what was expected, then
a. the quantity of aggregate goods and services supplied falls, which is shown by a shift of the short-run aggregate supply curve to the left.
b. the quantity of aggregate goods and services supplied falls, as shown by a movement to the left along the short-run aggregate supply curve.
c. the quantity of aggregate goods and services supplied rises, as shown by a shift of the short-run aggregate supply curve to the right.
d. the quantity of aggregate goods and services supplied rises, as shown by a movement to the right along the short-run aggregate supply curve.
d
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The short-run effect of an increase in the supply of money is
A) an increase in the price level, a decrease in real Gross Domestic Product (GDP), but an increase in nominal national income. B) an increase in the price level but not in real Gross Domestic Product (GDP). C) an increase in both real Gross Domestic Product (GDP) and the price level. D) an increase in real Gross Domestic Product (GDP) but not in the price level.
An increase in ________ tends to increase ________ and therefore increase ________
A) cost; price; supply B) cost; demand; price C) demand; price; cost D) supply; cost; price
Most economists agree that the focus of fiscal policy is to
a. plan the economy. b. balance aggregate demand and aggregate supply. c. balance the federal budget. d. balance environmental needs and resources.
United States Steel had its antitrust case dismissed on the grounds that it had shown no evidence of unreasonable conduct, despite controlling 60 percent of the steel market.
Answer the following statement true (T) or false (F)