An increase in aggregate demand will tend to cause which of the following?
A. a recessionary gap
B. cost-push inflation
C. a deflationary gap
D. none of these
Answer: D
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In the above figure, at the price level of 140 and real GDP of
A) $15 trillion, firms will not be able to sell all their output. B) $5 trillion, firms will not be able to sell all their output. C) $5 trillion, consumers will not be able to buy all the goods and services they demand. D) $15 trillion, consumers will not be able to buy all the goods and services they demand.
Everything else held constant, an increase in the time deposit ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease
Cash payments to a steel mill for steel used in production would be an example of:
a. sunk costs. b. fixed costs. c. explicit costs. d. implicit costs. e. entrepreneurial costs.
The demand curve for a monopolist is:
A. perfectly elastic. B. perfectly inelastic. C. not relevant since the monopolist sets price. D. the market demand curve.