The horizontal short-run aggregate supply curve
A) assumes that wages and all other input prices are constant.
B) assumes that opportunity cost is constant.
C) shows that real GDP can be increased only when prices increase.
D) assumes that there is full employment in the economy.
A
You might also like to view...
The Human Development Index combines ________, life expectancy, and measures of education to measure the standard of living
A) gross domestic product B) income per capita C) income per worker D) gross national product
Which of the following is an example of adverse selection?
A) Overgrazing of a common piece of land B) Passengers travelling in a subway without a ticket C) A customer buying a defective appliance from a used goods market D) The generation of a harmful chemical during the production of a good
The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the
A) risk premium. B) term premium. C) tax premium. D) market premium.
Suppose the population falls by 1 percent. For the standard of living to rise
a. nominal GDP can fall by as much as 1 percent b. nominal GDP must grow by at least 1 percent c. real GDP must grow by at least 1 percent d. real GDP must fall by at least 1 percent e. nominal GDP must fall by more than 1 percent