If the aggregate supply curve is flat,
A. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP.
B. contractionary fiscal or monetary policy will cause significantly less inflation.
C. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
D. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.
Answer: C
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A supply schedule can be plotted on a graph to yield a supply curve.
Answer the following statement true (T) or false (F)
Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is $1. The table below shows Lilly's utility values
Use the table to answer the questions that follow the table. Quantity of Ice Cream Cones Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Candy Total Utility Marginal Utility 1 20 1 20 2 38 2 38 3 52 3 48 4 62 4 54 a. Complete the table by filling in the blank spaces. b. Suppose Lilly purchases 2 ice cream cones and 1 candy bar. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should she buy and why?
In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker
a. True b. False Indicate whether the statement is true or false
Which of the following is a likely result of firms paying efficiency wages?
A. Lesser work effort B. A lower wage rate C. Increased job turnover D. Reduced supervision costs