Which of the following statements is false?
A) If the SRAS curve shifts rightward, the price level falls in the short run.
B) If AD rises and SRAS is constant, the price level rises in the short run.
C) If both SRAS and AD decline, Real GDP falls in the short run.
D) If both SRAS and AD increase, the price level necessarily rises in the short run.
E) none of the above
D
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In an open economy, the quantity demanded of bikes in the domestic market is ________.
A. 20,000 B. 80,000 C. 50,000 D. 100,000
Geographical conditions such as good climate, availability of natural resources, and fertile soil are examples of:
A) proximate causes of prosperity. B) implicit causes of prosperity. C) fundamental causes of prosperity. D) explicit causes of prosperity.
The figure above shows the supply and demand for pizza
a. What is the efficient level of output? b. If 70,000 pizzas are produced, what area represents the deadweight loss? c. Why does the deadweight loss in part (b) occur? d. If 20,000 pizzas are produced, what area represents the deadweight loss? e. Why does the deadweight loss in part (d) occur?
Explain how the aggregate demand curve is derived
What will be an ideal response?