For a given increase in aggregate demand, the steeper the short-run aggregate supply curve, _____
Fill in the blank(s) with the appropriate word(s).
the smaller the increase in real GDP.
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If a firm's fixed cost exceeds its total revenue, the firm should stop production by shutting down temporarily
Indicate whether the statement is true or false
An example of "automatic stabilizers" is a rise in ________ causing the budget deficit to ________
A) real GDP, fall B) real GDP, rise C) government expenditures, fall D) government expenditures, rise E) the average tax rate, fall
The market demand for a good is derived by summing all the individual demands
Indicate whether the statement is true or false
The cost of holding money balances increases when
a. the inflation rate decreases. b. the nominal interest rate increases. c. the nominal interest rate decreases. d. nominal GDP is far from full employment.