In order for a country's real GDP to increase without inflation or deflation over long periods time,
A. either its aggregate demand or its aggregate supply must increase.
B. its aggregate supply must increase.
C. its aggregate demand must increase.
D. both its aggregate demand and its aggregate supply must increase.
Answer: D
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Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations
a. Yes, because legal standards are stricter than ethical standards. b. Yes, because ethical obligations require only legal behavior. c. No, because ethics is too hard to define. d. No, because legal compliance is regarded as the moral minimum.
In Figure 3-4 above, an equilibrium income of 2000 occurs when planned autonomous spending is
A) 750. B) 800. C) 1250. D) 250.
If the government regulates the price a monopoly can charge, and the price ceiling is set below what the competitive market price would be, then
A) a shortage will exist. B) a surplus will exist. C) producer surplus is maximized. D) consumer surplus is maximized.
An aggregate demand curve indicates the quantities of real GDP demanded at different ______ levels.
a. income b. stock market c. price d. interest rate