The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the quantity of real GDP supplied, two items that are ________ correlated
A) upward-sloping; positively
B) vertical; not
C) upward-sloping; negatively
D) downward-sloping; negatively
E) downward-sloping; positively
A
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If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium
A) GDP will be below potential GDP. B) aggregate demand will increase. C) GDP will be equal to potential GDP. D) GDP will be above potential GDP.
Which of the following is true in the classical model?
a. A spontaneous increase in spending can cause an increase in output and employment. b. An increase in output and employment can cause a decrease in spending. c. A spontaneous decrease in spending can cause an increase in output and employment. d. An increase in output and employment can cause an increase in spending. e. A spontaneous decrease in spending can cause a decrease in output and an increase in employment.
Planned investment spending is _____ related to the interest rate and _____.
A. Negatively; expected GDP B. Negatively; existing productive capacity. C. Positively; expected GDP D. Positively; existing productive capacity
If marginal cost were $22, how many units of output would this firm produce?
A. 1
B. 2
C. 3
D. 4