If the aggregate supply curve is vertical, an increase in aggregate demand will
A) increase both real and nominal GDP by the full multiplier effect.
B) increase real GDP but not nominal GDP.
C) increase the price level but not real GDP.
D) increase real GDP by less than the full multiplier effect because of rising prices.
C
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Suppose the United Automobile Workers union agrees to accept lower wages for members if the automobile manufacturers lower their prices to buyers
Will the UAW's measures usually result in a larger number of cars being sold and hence more jobs for UAW members? A) No, because people only buy new cars when they need them. B) Not if the price elasticity of demand for new cars turns out to be less than one. C) Only in the unlikely event the demand for new cars is unit elastic. D) Probably not, because new car sales depend on advertising. E) Yes.
Refer to Table 9-18. Looking at the table above, what is the rate of growth of real average hourly earnings from 2015 to 2016?
A) 7.8% B) 6.25% C) 4% D) -4%
In the circular flow model, households supply resources such as labor services in the product market
Indicate whether the statement is true or false
Indifference curves describe ________
A) the relationship between current and future income B) the utility received by an individual consumer C) the relationship between utility and income D) productivity levels