For a given aggregate supply curve, an increase in aggregate demand will:
a. decrease the real interest rate
b. increase real GDP.
c. decrease the price level.
d. increase the real exchange rate.
e. decrease real GDP.
b
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Price controls on resources generally lead to surpluses
a. True b. False Indicate whether the statement is true or false
The event that occurred in the second term of President George W. Bush which effectively halted discussions of Social Security reform was
A. a breakdown of political stability in Afghanistan. B. Hurricane Katrina. C. the surge in Iraq. D. the invasion of Iraq.
Which statement is true?
A. The firm is making a profit in the short run.
B. The firm is taking a loss in the short run.
C. The firm is breaking even in the long run.
D. The firm is making a profit in the long run.