If aggregate demand increases and, as a result, the price level increases but equilibrium real GDP and employment remain unchanged, we can assume that the aggregate demand curve
A. intersects the upward-sloping segment of the aggregate supply curve.
B. intersects the vertical segment of the aggregate supply curve.
C. intersects the horizontal segment of the aggregate supply curve.
D. is horizontal.
B. intersects the vertical segment of the aggregate supply curve.
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The metaphor used to describe the working of the price system to achieve efficiency in a free market is
a. Occam's razor. b. the prisoner's dilemma. c. the invisible hand. d. the benefit principle.
Voluntary programs, direct controls, and emissions taxes are all equally effective ways of controlling pollution.
Answer the following statement true (T) or false (F)
What two simultaneous outcomes are implied by new trade theory?
What will be an ideal response?
A production possibilities frontier with a bowed-outward shape indicates
A) the possibility of inefficient production. B) constant opportunity costs as more and more of one good is produced. C) increasing opportunity costs as more and more of one good is produced. D) decreasing opportunity costs as more and more of one good is produced.