Exhibit 14-6 Aggregate supply curve
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In Exhibit 14-6, when the economy moves from a GDP of $1,000 billion to a GDP of $1,100 billion,
A. higher wages will lower the cost of producing goods.
B. real GDP and employment both increase, but only under conditions of constant prices.
C. real GDP increases and employment decreases, but only under conditions of price level increases.
D. real GDP and employment both increase, but only under conditions of price level increases.
Answer: D
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Which of the following will shift the aggregate demand curve to the left, ceteris paribus?
A) an increase in disposable income B) an increase in expected profits for firms C) an increase in net exports D) an increase in interest rates
Bond coupon payments represent
A) dividends paid to owners. B) interest on the amount borrowed. C) capital gains for tax purposes. D) payments to preferred shareholders.
If buyers expected the future price of a good to decrease, it would tend to increase the current quantity exchanged
a. True b. False Indicate whether the statement is true or false
Figure 3-19
Refer to . Sellers whose costs are less than price are represented by which line segment?
a.
AC
b.
CE
c.
BC
d.
CD