What causes movement from point A to point B on the curve?
a. a decrease in the price level from PL2 to PL1
b. an increase in the price level from PL1 to PL2
c. a leftward shift of the aggregate demand curve
d. an increase in real GDP from RGDP1 to RGDP2
b. an increase in the price level from PL1 to PL2
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How can compensating differentials explain differences in wages across jobs in different industries?
What will be an ideal response?
If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
a. marginal factor cost is $6. b. marginal factor cost is $200. c. total wage cost is $1,200. d. total wage cost is $7,200. e. $6 wage is too high.
Under the rational expectations hypothesis, which of the following is the most likely short-run effect of a move to expansionary monetary policy?
a. a higher general level of prices but little or no change in real output b. a higher general level of prices and an expansion in real output c. no change in the general level of prices and a reduction in real output d. no change in either the general level of prices or real output
Higher standards of living are the result of
What will be an ideal response?