Nominal GDP increases
What will be an ideal response?
if either prices and/or total output increase.
You might also like to view...
If both the price level and nominal incomes change by the same percentage: a. real GDP will remain constant
b. the aggregate supply curve will be upward-sloping. c. profit margins will change in real terms. d. the long-run aggregate supply curve will be horizontal. e. both a and d.
Keynesians tend to believe
A) the markets work freely. B) that free market economics is faulty. C) that government spending is the source of economic instability. D) none of these choices.
In monopolistic competition, the point of tangency between the demand curve and the ATC curve cannot be at the lowest level of average cost. What does this mean for firms?
a. The fail to operate at the highest cost of production even with long-run adjustments. b. They operate at the lowest cost of production because of long-run adjustments. c. They fail to operate in the most efficient manner even with long-run adjustments. d. They operate in the most efficient manner because of long-run adjustments.
Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:
A. decrease, and his demand curve will shift to the right. B. decrease, and his demand curve will shift to the left. C. increase, and his demand curve will shift to the right. D. decrease, causing a movement down along his demand curve.