In the horizontal segment of the aggregate supply curve, when GDP:
A. increases, the price level rises.
B. decreases, the price level falls.
C. increases, the price level does not change.
D. increases, the price level falls.
Answer: C
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A) GDP. B) the labor force. C) the unemployment level. D) net investment.
The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills
Indicate whether the statement is true or false
An economic boom in the United States will tend to cause booms in other countries because as U.S. GDP rises, U.S
a. tariffs will automatically fall. b. exports will rise. c. imports will rise. d. exports will fall.
In the above table, dissaving occurs at every level of income below
A. $5,000. B. $10,000. C. $7,000. D. $8,000.