According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand decreases
A. real GDP will fall and price level will remain constant.
B. real GDP will rise and price level will fall.
C. real GDP will rise and price level will remain constant.
D. real GDP will rise and price level will rise.
Answer: A
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Refer to Common Property II. If the common property is privately owned, the owner earns revenue equal to
a. Area C + D. b. Area F + G. c. Area C + D + F + G. d. zero.
Which of the following statements is true?
A) Firms normally prefer wage cuts over lay-offs. B) Cuts in wages boost worker morale. C) Workers normally resist increases in wages. D) Wage rigidity can cause unemployment.
An increase in the expected price level
A) shifts the short-run aggregate supply curve up and to the left. B) shifts the short-run aggregate supply curve down and to the right. C) has no effect on the short-run aggregate supply curve. D) results in a movement along the short-run aggregate supply curve, rather than a shift in the short-run aggregate supply curve.
If the customer moves first with a high price what is the best response of the shopkeeper
a. Accept the high price happily b. Walk away from the deal c. Throw the haggling customer out of your store d. Laugh at the customer's face