If aggregate demand and nominal GDP increase while the price level is constant, we would conclude that
A. the aggregate supply curve is upward sloping.
B. the aggregate supply curve is horizontal.
C. the economy is already at full employment.
D. the aggregate demand curve is vertical.
Answer: B
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Which of the following is FALSE regarding the general rule for hiring?
A) Virtually every optimizing rule in economics involves comparing marginal benefits with marginal cost. B) The benefit from added workers is extra output and consequently more revenues. C) The firm hires workers up to the point at which the additional cost associated with hiring the last worker is equal to the additional revenue generated by that worker. D) If any firm hired fewer workers over time, profits would definitely increase at that firm.
An example of an oligopoly is: a. the book industry
b. the music CD industry. c. the automobile industry. d. the market for soybeans.
Most of the time, a profit motive eliminates discriminatory behavior from a market; however, a discriminatory wage gap can persist even if the firm owners only care about profit if there is
Warren Buffett feared gaining weight. To keep himself from eating too much, he gave unsigned checks for $10,000 to his children, promising to sign them if he exceeded his desired weight by a certain date. This is an example of:
A. sunk costs. B. an abductive decision. C. an inductive decision. D. a precommitment strategy.