If technology improves when a nation is in the intermediate range and only the Aggregate Supply changes, then:
a. Real GDP rises and real GDP remains the same.
b. Real GDP remains the same and average price level falls.
c. Real GDP remains the same and average price level rises.
d. Real GDP rises and average price level falls.
e. Real GDP falls and average price level rises.
.D
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When there are many goods is that in a barter system
A) transactions costs are minimized. B) there exists a multiple number of prices for each good. C) there is only one store of value. D) exchange of services is impossible.
Which of the following is true of resources?
a. Resources are inputs used to produce goods and services. b. Labor is the mental and physical capacity of workers to produce goods and services. c. Entrepreneurship organizes resources to produce goods and services. d. All of these are true.
Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600.
If the Federal Reserve wants to raise the interest rate to 8 percent, it must ________ the money supply to ________.
A. decrease; 400 B. increase; 800 C. decrease; 800 D. increase; 400
A government's debt is reduced when it
A. runs a surplus. B. sells more bonds. C. balances is budget. D. runs a deficit.