Other things being equal, along an aggregate demand curve, a higher price level is associated with
A. a higher real GDP.
B. a lower real GDP.
C. higher income levels.
D. a lower nominal GDP.
Answer: B
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Refer to Figure 18.4. With free trade, what is the equilibrium price of gloves in Duckland?
A) $0 B) $8 C) $9 D) $11
According to the aggregate demand-aggregate supply model, what is the short-run impact of a reduction in the money supply by the Fed?
A) Current output will fall, but the price level will rise. B) Current output will rise, but the price level will fall. C) Current output and the price level will both rise. D) Current output and the price level will both fall.
What is convergence hypothesis? Why should we expect convergence in the long run?
What will be an ideal response?
If the government were to intervene and set a wage for unskilled labor above the market wage, then we would expect, relative to the market outcome,
a. an increase in the number of unskilled jobs available. b. a decrease in the number of unskilled jobs available. c. a decrease in the number of workers wanting unskilled jobs. d. None of the above is correct.