An increase in aggregate demand when the economy is operating at ________ is likely to result in an increase in the overall price level and ________ in output.
A. low levels of output; no change
B. high levels of output; a large increase
C. high levels of output; little or no increase
D. low levels of output; a decrease
Answer: C
You might also like to view...
Which of the following is considered a command economy?
a. communism b. socialism c. fascism d. All of these.
MPK falls when production becomes more ________-intensive, meaning a ________ in v* and a ________ in net investment
A) labor, fall, fall B) labor, fall, rise C) labor, rise, fall D) capital, rise, rise E) capital, fall, fall
If you and your friends receive many good job offers upon graduation, but the paychecks you all receive, although attractive, seem to buy fewer and fewer goods each month, you're probably living in the business cycle phase of
a. recession b. downturn c. boom or prosperity d. recovery e. trough
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. In a closed economy, if the citizens of this island consume 1,200 fish per year, how many pounds of berries can they consume?
A. 4,800 pounds B. 9,200 pounds C. 12,800 pounds D. 8,000 pounds