What is another name for a vertical line that shows the long-run aggregate supply in the aggregate demand and aggregate supply model?
a. Real GDP
b. Equilibrium GDP
c. Potential GDP
d. Long-run aggregate demand
c. Potential GDP
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In Figure 10-5 above, suppose that new tougher environmental regulations require certain industries to accelerate their phase-out of some of their existing equipment and install new types that produce less pollution
Translating this into an effect on d causes a movement of the steady-state point such as from points A) A to B. B) D to B. C) D to C. D) A to C. E) D to A.
If the dollar depreciates, both the aggregate demand curve and the aggregate supply curve shift inward
a. True b. False Indicate whether the statement is true or false
Which would be evidence of price discrimination at a local bar called Heaters?
A. Charging lower prices to customers wearing Heaters t-shirts. B. Charging lower prices during Happy Hour from 5 to 6 p.m. C. Charging higher prices than under perfect competition. D. Charging higher prices for imported than for domestic beer.
A temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.
A. lower; increase B. lower; decrease C. raise; increase D. raise; decrease