The slope of the aggregate supply curve shows that, all else the same, the
A) quantity of real GDP supplied increases as the price level increases.
B) price level remains constant as potential GDP increases.
C) price level remains constant as real GDP increases.
D) quantity of real GDP supplied remains constant as the price level increases.
E) quantity of real GDP supplied decreases as the price level increases.
A
You might also like to view...
Refer to Figure 9-3. What is the reduction in value of consumer surplus after the imposition of the quota?
A) $8 million B) $26.25 million C) $27.75 million D) $30 million
Which of the following is correct? A general assumption in real business cycle models is that
a. dissimilar individuals populate the economy. b. the labor market does not clear. c. the economy is populated by a group of identical individuals. d. the economy experiences involuntary unemployment.
When there is an increase in the duration of unemployment, the U.S. Congress typically responds by
A) lowering income taxes. B) extending unemployment benefits. C) encouraging unemployed U.S. workers to seek employment overseas. D) redefining "unemployed" so the unemployment rate does not look so bad.
The economic value which can be created by a transaction between two people, Ed (seller) and Luis (buyer), is $50 as Ed's opportunity cost of selling is $135 and Luis' valuation of the good is $185 . If each gains $25 from this transaction, which of the following conclusions can be drawn?
a. Transaction costs are zero. b. Luis has higher bargaining power than Ed. c. Ed has higher bargaining power than Luis. d. Transaction costs are positive.