The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
A. not alter the economy's full-employment real GDP.
B. increase the economy's full-employment real GDP.
C. reduce the quantity of goods and services purchasers will demand.
D. improve the overall efficiency of resource use.
Answer: A
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Under the Bretton Woods system of fixed exchange rates, the price of the U.S. dollar was fixed in terms of gold and the prices of all other currencies were fixed in terms of dollars.
Answer the following statement true (T) or false (F)
Advertising is a ________ cost that is incurred by ________
A) variable; monopolies B) variable; perfectly competitive firms C) fixed; perfectly competitive firms D) fixed; monopolistically competitive firms E) marginal; monopolistically competitive firms
Someone who says he loves his mother far more than he loves football but nonetheless attends a football game when he could be visiting his mother
A) displays weakness of will. B) is a hypocrite. C) is behaving inconsistently with his own stated values. D) places a lower marginal value on visiting his mother than on attending the football game. E) shows that the marginal value of visiting his mother is less for him than the marginal cost of attending the football game.
By fixing the mint price of gold among commercial nations under the Gold Standard, the exchange rate risk falls significantly, thus encouraging trade
Indicate whether the statement is true or false