The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:
a. horizontal at the full-employment level of real GDP.
b. positively sloped at the full-employment level of real GDP.
c. vertical at the full-employment level of real GDP.
d. backward bending at the full-employment level of real GDP.
c
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Today the great divide between the haves and have-nots is a _______________.
Fill in the blank(s) with the appropriate word(s).
According to Baumol and Blinder, from the demand side a decrease in the price level causes aggregate expenditures to
A. fall, resulting in a lower level of equilibrium income. B. fall, resulting in a higher level of equilibrium income. C. rise, resulting in a higher level of equilibrium income. D. rise, resulting in a lower level of equilibrium income.
The 20 percent of families with the lowest income in the United States receive approximately ________ percent of total income.
A. 20 B. 15 C. 1 D. 3
According to the law of demand, when the price of gas rises, Question 18 options:
A. people will drive more. B. oil refining companies record financial losses. C. car sales increase. D. people decrease the quantity of gas demanded, perhaps by driving less.