If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP rises and average price level falls.
b. Real GDP falls and average price level rises.
c. Real GDP rises and real GDP remains the same.
d. Real GDP remains the same and average price level falls.
e. Real GDP remains the same and average price level rises.
.B
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The average hourly wage (excluding benefits) in the United States is currently around
A. $7.25 B. $15.50 C. $20.00 D. $26.00
If the price of gasoline increases significantly, then we'd expect the demand curve for large hybrid and electric cars to
A. not shift, but there will be a movement along that demand curve. B. shift to the right. C. shift to the left. D. become upward-sloping.
Will a perfectly competitive firm ever produce in the short run even though it is incurring an economic loss?
What will be an ideal response?
If the coefficient a in the new classical expression for short-run aggregate supply were equal to zero,
A) aggregate output would always be at its full-employment level. B) the short-run aggregate supply curve would slope down. C) the short-run aggregate supply curve would be a horizontal line. D) aggregate output would only differ from its full-employment level if the actual price level did not equal the expected price level.