Fluctuations in aggregate demand and aggregate supply explain why real GDP fluctuates
Indicate whether the statement is true or false
TRUE
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Between the Civil War and World War I, the U.S. monetary system:
a. experienced a persistent deflation. b. suffered several financial crises in which banks closed and firms went bankrupt. c. adopted a de facto gold standard. d. adopted a central bank. e. All of the above.
Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50 . If Elaine drinks three cups of coffee for breakfast, her total utility is equal to
a. $.50, the value of her last cup of coffee. b. $1.00, the value of her first cup of coffee. c. marginal utility. d. $2.25. e. $1.50.
The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased.
Answer the following statement true (T) or false (F)
Firms may react to a payroll tax by
A. shifting to more capital intensive techniques. B. increasing workers' wages. C. increasing their output. D. substituting labor for capital.