Initially, demand-pull inflation will
A) increase both the price level and increase real GDP.
B) shift the aggregate supply curve rightward.
C) decrease potential GDP.
D) increase the price level and decrease real GDP.
E) increase the price level and not change real GDP.
A
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If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing banana splits
Indicate whether the statement is true or false
For the purposes of GDP accounting, government purchases
A) include transfer payments. B) are considered part of investment. C) include wages and benefits paid to government workers. D) are considered part of consumption.
For a particular good, a 5 percent increase in price causes a 15 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are many substitutes for this good. b. The good is a necessity. c. The market for the good is broadly defined. d. The relevant time horizon is short.
In the ordered pair (20, 30), 20 is the
a. the x-coordinate. b. the horizontal location of the point. c. the y-coordinate. d. Both a and b are correct.