If real GDP is greater than potential GDP, then to restore equilibrium, ________ and the price level ________
A) the aggregate supply curve shifts rightward; falls
B) the aggregate demand curve shifts leftward; rises
C) the aggregate supply curve shifts leftward; rises
D) the aggregate demand curve shifts rightward; falls
E) potential GDP increases; falls
C
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For a Nash equilibrium to be possible, all players must ________
A) be able to predict their outcomes associated with all possible actions of the other players B) have a way to communicate with the other players C) have a strategy which allows for collusion D) Both A and B
Rising government expenditure, through its effect on the real interest rate, ________ v* and thus ________ net investment
A) raises, stimulates B) raises, depresses C) lowers, stimulates D) lowers, depresses
In using the Internal Rate of Return approach, one must first calculate the discount rate on the investment that makes
A) the net present value equal zero. B) the interest rate equal zero. C) the interest rate equal the discount rate. D) the first year's return positive.
Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's profit-maximizing quantity if their average total and marginal cost are constant and equal to $60?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) 50 B) 100 C) 200 D) 150