There are no idle resources, the multiplier is operative, and autonomous spending rises. It follows that
A) Real GDP will not increase.
B) Real GDP will rise.
C) prices will rise.
D) a and c
E) a, b, and c
D
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Explain why, in a simple economy which does not include the government or taxation, saving equals investment at the equilibrium level of output
What will be an ideal response?
Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped. Janae's unemployment would be best classified as
A) natural unemployment. B) cyclical unemployment. C) structural unemployment. D) sales-related unemployment. E) frictional unemployment.
A product is considered to be nonexcludable if
A) you cannot keep those who did not pay for the item from enjoying its benefits. B) it is jointly owned by all members of a community. C) your consumption of the product reduces the quantity available for others to consume. D) you can keep those who did not pay for the item from enjoying its benefits.
Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:
A. is considered a good predictor of future consumer prices. B. accounts for inflation before it reaches consumers, adjusting the CPI downward. C. is a lag variable for inflation. D. accounts for inflation before it reaches consumers, adjusting the CPI upward.