A horizontal aggregate supply curve below the level of full employment is most consistent with which of the following views of the economy?
A. Monetarist.
B. Consensus.
C. Supply-side.
D. Keynesian.
Answer: D
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The increase in world oil prices during the 1970s was
A. the result of depletion of world reserves of oil. B. artificially created by OPEC. C. the result of extremely high growth rates in industrialized countries. D. fully reversed by 1982.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Select the graph below that best shows the change in the market specified in the following situation: In the market for wheat, when the cost of fertilizer decreases
Assume that the graphs show a competitive market for the product stated in the question.
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Measuring total aggregate production in constant dollars uses which of the following measures?
A. nominal gross domestic product B. nominal net domestic product C. real personal income D. real gross domestic product