Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
a. A decrease in aggregate supply.
b. An increase in aggregate supply.
c. A decrease in aggregate demand.
d. An increase in aggregate demand.
c
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The Solow model suggests that economies with the same aggregate production function, ratio of workers to the total population and saving rates will ________
A) trade with one another B) start with different initial levels of per capita income C) possess the same rate of depreciation D) experience convergence
The Darby (1976) revisions of the 1930s unemployment data show that if you count public employment, then the 1930s were not especially severe by historical standards
Indicate whether the statement is true or false
Which of the following is true of the relationship between price and quantity supplied? a. Whatever the price level, quantity supplied is equal to quantity demanded. b. More is supplied at lower prices. c. As the price rises, consumers are willing to purchase more of the good supplied. d. Except for market-day supply, an increase in price generates an increase in quantity supplied
e. An increase in price leads to a decrease in quantity supplied.
The supply curve shows the relationship between the
A. price of the product and quantity supplied. B. quantity demanded and the quantity supplied. C. cost of production and the price of the product. D. cost of resources and cost of production.