Along the intermediate range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
A. both the price level and real GDP.
B. only real GDP.
C. only the price level.
D. real GDP and reduce the price level.
Answer: A
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Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $8. B) $20. C) $28. D) $36.
Any increase in efficiency increases output available for distribution.
Answer the following statement true (T) or false (F)
In a progressive tax structure:
a. both the tax rate and absolute tax amount increase with an increase in income. b. the tax rate remains constant, but the absolute tax amount increases with an increase in income. c. both the tax rate and absolute tax amount decline with an increase in income. d. the tax rate falls,but the absolute tax amount increases with an increase in income. e. the tax rate increases, but the absolute tax amount decreases with an increase in income.
Inflation increases the value of money
a. True b. False Indicate whether the statement is true or false