If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve is:?
A. ? vertical.
B. ? horizontal.
C. ?negatively sloped.
D. ?positively sloped.
Answer: D
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A conservative who was opposed to an increase in the size of the government sector but believed in the Keynesian approach to aggregate demand management would most likely favor which of the following expansionary policies?
a. increase taxes b. decrease taxes c. increase government spending d. decrease government spending
An increase in the price of Irish whiskey imported into the United States will be reflected in
a. both the U.S. GDP deflator and the U.S. CPI. b. neither the U.S. GDP deflator nor the U.S. CPI. c. the U.S. GDP deflator, but not the U.S. CPI. d. the U.S. CPI, but not the U.S. GDP deflator.
Assume the real U.S. GDP in 1997 was $7,269 billion and the U.S. population was 268 million, and the real U.S. GDP in 1998 was $7,552 billion and the U.S. population was 270 million. From 1997 to 1998, the per capita real GDP
A. Remained unchanged. B. Increased. C. Decreased. D. Cannot be determined from the information given.
Total output may continue to rise even though marginal physical product is negative.
Answer the following statement true (T) or false (F)