Answer the following statements true (T) or false (F)
1) A negative GDP gap can be caused by either a decrease in aggregate demand or a decrease in aggregate supply.
2) The equilibrium price level and equilibrium level of real GDP occur at the intersection of the
aggregate demand curve and the aggregate supply curve.
3) The greater the upward slope of the AS curve, the larger is the realized multiplier effect of a
change in investment spending.
4) The price level in the United States is more flexible downward than upward.
1) T
2) T
3) F
4) F
You might also like to view...
Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?
A) The market wage for trained nurses is currently above the equilibrium wage. B) There is currently a surplus of nurses in this market. C) The market wage for nurses will eventually rise to the market clearing wage. D) The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.
A technological advance that increases the marginal product of labor will
A. decrease the demand for labor. B. increase the supply for labor. C. decrease the supply for labor. D. increase the demand for labor.
What is one major hurdle monopolies face to engage in first-degree price discrimination?
A. Finding everyone's willingness to pay is costly and difficult. B. Overcoming legal conflicts to charge each person differently is costly. C. Market research is costly and time-consuming. D. Not every person has a maximum willingness to pay for a good.
What factors will shift the aggregate expenditure function for a given level of real domestic income?
What will be an ideal response?