Fiscal and monetary policy can be used to change the price level but not output when the aggregate
A. Demand curve is vertical.
B. Supply curve is vertical.
C. Supply curve is upward-sloping but not vertical.
D. Supply curve is horizontal.
Answer: B
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When a firm adopts new technology, generally its
A) cost curves shift upward. B) cost curves shift downward. C) cost curves are unaffected. D) supply curve shifts leftward. E) production permanently decreases.
Which of the following is included in GDP?
a. life expectancy b. literacy c. health d. infant mortality
If the price of inputs rises and foreign income rises:
a. Price index rises, and real GDP falls. b. Price index rises, and the change in real GDP is uncertain. c. Price index falls, and real GDP rises. d. Price index falls, and real GDP falls. e. Price index falls, and the change in real GDP is uncertain.
A rise in aggregate expenditure is always
a. smaller than the rise in income that causes it b. larger than the rise in income that causes it c. the same as the rise in income that causes it d. smaller than the increase in consumer spending that causes it e. smaller than investment spending