An increase in the amount of physical capital will cause
A. aggregate demand and aggregate supply to increase by the same amounts, causing real GDP to increase and the price level to remain constant.
B. an increase in both aggregate demand and real GDP, but have no effect on the price level.
C. an increase in both aggregate supply and real GDP and a reduction in the price level.
D. an increase in both aggregate supply and real GDP, but have no effect on the price level.
Answer: C
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Moving rightward along a straight line, the slope of the line
A) always increases. B) always decreases. C) stays the same. D) increases if the line slopes upward to the right. E) decreases if the line slopes downward to the right.
The government's share of employment peaked during the
A. 1960s. B. 1970s. C. 1940s. D. 1930s.
The U.S. balance of payments status may improve when
A. the inflation rate increases in the United States relative to other countries. B. political instability in other countries increases. C. the American government increases its spending on foreign aid. D. the world demand for U.S. products falls.
When cash is withdrawn from a checkable-deposit account at a bank, the
A. composition of money supply M1 does not change. B. money supply M1 increases. C. money supply M1 does not change but its composition changes. D. money supply M1 decreases.