Moving upward along the short-run aggregate supply curve results in a ________ in the price level and ________ in real GDP
A) rise; an increase
B) rise; a decrease
C) fall; an increase
D) fall; a decrease
A
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The above figure shows a nation's production function. Point A is
A) the maximum amount of real GDP the nation can produce. B) the labor market equilibrium quantity of employment and real GDP. C) attainable if the economy is inefficient. D) attainable if the nation uses resources efficiently. E) unattainable given the state of the economy.
A production quota set below the equilibrium quantity creates
A) a decrease in supply B) a decrease in marginal cost C) a rise in price D) inefficient underproduction E) all of the above
Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________
A) aggregate supply; government spending B) aggregate demand; taxes C) aggregate supply; taxes D) aggregate demand; government spending
The Classical growth model argues that markets are an impediment to growth because they lead to unequal distribution of income.
Answer the following statement true (T) or false (F)