The table above gives the aggregate demand and aggregate supply schedules in Lotus Land
With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be ________ and real GDP will be ________. A) 120; $400
B) 110; $500
C) 90; $400
D) 100; $600
D
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If velocity does not change and the quantity of money grows at the same rate as does real GDP, then in the long run
A) the real interest rate is less than the nominal interest rate. B) the inflation rate equals zero. C) the nominal interest rate equals zero. D) the inflation rate equals the growth rate of the quantity of money. E) the nominal interest rate is less than the real interest rate.
The right to private property and ability to exchange goods and services freely is known as
A) political freedom. B) economic freedom. C) constitutional freedom. D) external freedom.
How does rent control tend to cause persistent imbalances in the market for housing?
A. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. B. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. C. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. D. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
Which of the following are examples of situations with negative network externalities?
A. All of the above B. A crowded beach C. Clothing made to order D. A rare work of art