Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this
a. it is only necessary that long-run aggregate supply shifts right over time.
b. it is only necessary that aggregate demand shifts right over time.
c. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must shift farther.
d. None of the above cases would produce rising prices and growing real GDP over time.
C
You might also like to view...
Psychological incentives:
A. can serve as commitment devices. B. are not important in non-economic settings. C. never serve as commitment devices. D. are not important in economic settings.
In 1979, the price of gasoline was $1.389 per gallon and the CPI was 72.6. In 2003, the price of gasoline was $1.589 per gallon and the CPI was 182.9. Find the real price of gasoline in 1979 and 2003 in terms of base period dollars
What will be an ideal response?
Which of the following is a method which can be used for estimation in simultaneous equations models?
A. Feasible generalized least squares estimation B. Prais-Winsten transformation C. Cochrane-Orcutt transformation D. Two stage least squares estimation
Real GDP per capita and other alternative measures of the quality of life are:
A. independent. B. directly correlated. C. poorly correlated. D. inversely related.