Refer to the information given. If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will:
Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the
price level (P) initially is 100, and prices and wages are flexible both upward and downward.
Use the following short-run aggregate supply schedules to answer the question.
A. rise from $500 to $560.
B. fall from $500 to $440.
C. fall from $560 to $500.
D. rise from $440 to $500.
B. fall from $500 to $440.
You might also like to view...
The relative price of one currency in terms of another is known as the ________
A) nominal exchange rate B) real exchange rate C) domestic price level D) real interest rate
Which of the following is not a user charge?
a. An entry fee to a national park. b. A toll for a toll road. c. A bus fare for a municipal bus service. d. A flat monthly fee for municipal water service.
Which of the following characteristics does a public good have?
a. Nonexcludable and rival b. Excludable and rival c. Non-excludable and nonrivalrous d. Excludable and nonrivalrous
The total economic cost of producing a good or service is called the
a. comparative value of construction. b. social consequence of resources. c. marginal valuation of output. d. opportunity cost of production.