In order for an increase in aggregate demand to raise Real GDP and the price level, the aggregate supply curve must be ____________________. If an increase in aggregate demand raises the price level but leaves Real GDP unchanged, the aggregate supply curve must be _____________________
A) upward-sloping; vertical
B) upward-sloping; horizontal
C) downward sloping; vertical
D) vertical; upward-sloping
E) vertical; downward-sloping
A
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What will be an ideal response?
In the United States, the percentage of households that have incomes below the mean income is
A) 50 percent. B) less than 50 percent. C) more than 50 percent. D) 0 percent.
A monopoly will always sell rather than rent its product
Indicate whether the statement is true or false
In a perfectly competitive market, long-run equilibrium requires which of the following?
a. Allocative efficiency and productive efficiency b. Allocative efficiency and zero profits c. Productive efficiency and zero profits d. Productive efficiency and elasticity