The aggregate supply curve shows the:
a. Direct relationship between the price level and real GDP purchased
b. Direct relationship between the price level and real GDP produced
c. Inverse relationship between the price level and real GDP purchased
d. Inverse relationship between the price level and real GDP produced
b. Direct relationship between the price level and real GDP produced
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies. If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A) 5 pies B) 10 pies C) 15 pies D) 20 pies
Which of the following is true of units of utility?
a. Each unit is worth $1. b. They cannot be compared across consumers. c. They apply to goods but not to services. d. They do not exist for very wealthy individuals. e. They are negative for inferior goods.
From an economist's viewpoint, discrimination occurs if there is a wage differential between two groups when there is no difference in the marginal revenue product of the two groups
a. True b. False Indicate whether the statement is true or false