If real GDP is less than potential GDP, then the ________ and the price level ________
A) aggregate demand curve shifts leftward; rises
B) aggregate demand curve shifts rightward; falls
C) aggregate supply curve shifts leftward; rises
D) aggregate supply curve shifts rightward; falls
E) amount of potential GDP increases; falls
D
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Identify the correct definition of the federal funds rate
A) The federal funds rate is the interest rate at which the Fed lends money to households. B) The federal funds rate is the interest rate at which banks lend money to the Fed. C) The federal funds rate is the interest rate at which banks lend their deposits with the Fed to other banks. D) The federal funds rate is the interest rate at which the Fed lends money to business firms.
The bowed out (concave) shape of the production possibilities curve implies that as production of one good
A) increases, society must forgo increasing amounts of another good. B) increases, production of other goods increases as well. C) decreases, production of other goods decreases as well. D) increases, society must forgo decreasing amounts of another good. E) increases, society can obtain a free lunch.
Describe four forms of affirmative action
What will be an ideal response?
Which of the following provides young people with a strong incentive to make regular payments into a retirement program and invest these funds in a diverse set of stocks?
A) The prices of stocks tend to fluctuate more than the prices of bonds. B) When held over lengthy periods like 30 or 40 years, historically the rate of return on stocks has been both higher and less variable than that of bonds. C) Over short periods of time, variation in the real rate of return of stocks is greater than bonds. D) Lower interest rates will lead to higher