If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP remains the same and average price level rises.
b. Real GDP remains the same and average price level remains the same.
c. Real GDP falls and average price level rises.
d. Real GDP falls and average price level falls.
e. Real GDP falls and average price level remains the same.
.C
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Refer to Figure 15-2. In the figure above, the movement from point A to point B in the money market would be caused by
A) an open market sale of Treasury securities by the Federal Reserve. B) a decrease in real GDP. C) an increase in the price level. D) a decrease in the required reserve ratio by the Federal Reserve.
If the elasticity of supply of a resource is greater than zero but less than infinity, its income will comprise of:
a. only economic rent. b. only transfer earnings. c. salaries and traveling allowances. d. both economic rent and transfer earnings. e. salaries, traveling allowances, as well as other incentives.
Federal Advisory Council (FAC).
What will be an ideal response?
The major protection against sudden mass attempt to withdraw cash from banks is the:
a. Federal Reserve. b. deposit insurance provided by the FDIC. c. gold and silver backing the dollar. d. Consumer Protection Act.