In the long run, the position of the short-run aggregate supply curve determines:
A. both output and the price level.
B. neither output nor the price level.
C. output.
D. the price level.
Answer: B
You might also like to view...
As a curve approaches a maximum point, the slope will
A) be positive, then negative after the maximum point. B) be negative, then positive after the maximum point. C) remain constant on either side of the maximum point. D) increase before and after the maximum point.
Monetary policy refers to the actions the Federal Reserve takes to manage
A) the money supply and income tax rates to pursue its economic objectives. B) government spending and income tax rates to pursue its economic objectives. C) income tax rates and interest rates to pursue its economic objectives. D) the money supply and interest rates to pursue its economic objectives.
If money is used as a mechanism to hold purchasing power for a period of time it is functioning as a
A) unit of account. B) medium of exchange. C) store of value. D) standard of value.
Suppose the development of the European Union leads to greater investment in Europe. You'd expect
A) a recession in Europe. B) a decline in the world real interest rate. C) a rise in the current account in Europe. D) an increase in the world real interest rate.