If the price level rises, what will happen to the level of real GDP supplied?
a. It will usually decrease.
b. It will usually increase.
c. Nothing.
d. It will decrease at first and then increase.
b
You might also like to view...
If an economy experiences a $0.8 trillion increase in investment resulting in an increase in real GDP from $10 trillion to $12 trillion,
a. what is the change in equilibrium expenditure? b. what is the change in autonomous expenditure? c. what is the multiplier? d. how would an increase in the marginal tax rate effect the multiplier?
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive less safely with more airbags as without c. football players avoid 'spearing' with their heads even with safer helmets d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?
A. The United States has the absolute advantage in the production of both shoes and apples. B. Canada has the absolute advantage in the production of both shoes and apples. C. The United States has the absolute advantage in the production of shoes and Canada has the absolute advantage in the production of apples. D. Canada has the absolute advantage in the production of shoes and the United States has the absolute advantage in the production of apples.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.The outcome of the game in the figure shown predicts that Joe will earn utility of:
A. 9. B. 13. C. 5. D. 7.