The quantity of real GDP demanded increases if _______
A. the buying power of money increases
B. the money wage rate rises
C. the price level falls
D. the nominal interest rate falls
C Changes in the price level bring movements along the AD curve and change the quantity of real GDP demanded.
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Which of the following situations would cause a period of stagflation at a later point in time?
a. a recessionary gap b. a reduction in investment spending c. an increase in technological development d. an inflationary gap
Indifference curves have positive slopes.
Answer the following statement true (T) or false (F)
If there is a change in the U.S. endowment of factors of production, then there would be
A) shifts in just SRAS. B) a movement along the SRAS curve. C) a shift in both LRAS and SRAS. D) a shift in just LRAS.
The vertical axis of a graph that shows a market supply curve indicates the
A. various quantities of output at which the market will be cleared. B. cost of the amount of output produced. C. number of sellers who are in the market for this product. D. prices at which firms would be willing and able to sell their different products.