Which of the following is not true about a change in the price level?
a. It will shift the aggregate demand curve
b. It will shift the aggregate expenditure curve.
c. It will result in a new value of equilibrium real GDP demanded.
d. It will change the real value of dollar-denominated assets.
e. It will shift the consumption function.
a
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Large countries can improve their welfare by levying a tariff only if it does not
A) encourage rent seeking elsewhere in the economy. B) discourage innovation. C) lead to retaliation by the nation's trading partners. D) All of the above. E) None of the above.
In the Monetarists' view, a one-time increase in the price level results from a(n)
A) technological improvement. B) increase in the labor force. C) supply shock. D) interest-rate increase.
In the AD-AS framework, long-run equilibrium implies that ________
A) quantity demanded equals quantity supplied at a moderate level of equilibrium inflation B) quantity demanded equals quantity supplied at a point consistent with the short-run equilibrium level of inflation C) quantity demanded equals quantity supplied at a point consistent with the natural rate of unemployment D) all of the above E) none of the above
International trade and competition from abroad
a. provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low. b. will make it more difficult for domestic producers to realize fully the potential gains from economies of scale in production. c. will make it more difficult for domestic consumers in small countries to purchase from large scale producers. d. do all of the above. e. do none of the above.