In the intermediate range of the aggregate supply curve, higher aggregate demand will increase:
A. both the price level and real GDP.
B. real GDP without raising the price level.
C. the price level without affecting real GDP.
D. the price level but reduce real GDP.
Answer: A
You might also like to view...
In the table above, how many jackets must Mark forgo for every dress he makes?
A) 2/3 of a jacket B) 1 jacket C) 24 dresses D) 16 jackets E) 1 1/2 jackets
The currency drain reduces the amount of
A) reserves available to banks to make loans. B) currency the Fed has outstanding in the economy. C) currency available for banks to borrow from the Fed. D) the monetary base. E) open market operations the Fed can make.
The nominal rate of interest is any rate of interest below 3 percent
a. True b. False Indicate whether the statement is true or false
Exclusion restrictions are said to be imposed in a two-equation simultaneous equations model if it is assumed that:
A. certain exogenous variables do not appear in the first equation and others are absent from the second equation. B. certain endogenous variables do not appear in the first equation and others are absent from the second equation. C. the error terms in each equation is correlated with the exogenous variables. D. the error terms in each equation is uncorrelated with the exogenous variables.