The short-run aggregate supply curve (SRAS) slopes upward to the right because unexpected increases in prices will
a. increase aggregate demand as consumers buy more.
b. decrease aggregate demand as consumers buy less.
c. cause firms to expand output since the higher product prices will improve profitability.
d. cause firms to reduce output since the higher product prices will decrease profit margins.
C
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Use the following table with data for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. All figures are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$540$540560555580570600585620600640615660630If gross investment is $25 billion, the equilibrium level of real GDP will be
A. $620 billion. B. $600 billion. C. $640 billion. D. $660 billion.
The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy
Indicate whether the statement is true or false
Refer to the figure above. What is the total surplus before Lithasia opens up to free trade?
A) $10 B) $20 C) $30 D) $40
If a tax is imposed on buyers in a market in which supply is perfectly inelastic, the
A) buyers pay the entire tax. B) sellers pay the entire tax. C) buyers and the sellers both pay a portion of the tax. D) neither the buyers nor the sellers pay the tax.