GDP in excess of potential GDP will shift the aggregate supply curve to the left and the price level will increase
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Which of the following is not an example of rent-seeking behavior?
A) competition for subsidies B) competition for the exclusive right to import a product C) lobbying the government to impose tariffs on certain imported products D) engaging in aggressive advertising that slams a competitor's product
The demand for salt is relatively price inelastic, while the demand for pretzels is relatively price elastic. How can you best explain why?
What will be an ideal response?
If unemployment benefits became more generous it would be likely to _____ frictional unemployment and _____ the natural rate of unemployment:
a. Increase; increase b. Increase; not change c. Not change; increase d. Increase; decrease
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall. b. Reserves account would not change and monetary base would fall. c. Reserves account would fall and monetary base would not change. d. Reserves account would fall and monetary base would fall. e. Reserves account would fall and monetary base would rise.