In an AD/AS model:
A. real GDP is shown on the horizontal axis.
B. the potential GDP always slopes downwards.
C. the GDP deflator always slopes upwards.
D. the CPI is shown on the vertical axis.
Ans: A. real GDP is shown on the horizontal axis.
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Suppose the price of a box of cereal rises from $4 to $6. Using the midpoint method, what is the percentage change in price?
A) 50 percent B) 40 percent C) 33 percent D) 67 percent E) None of the above answers is correct.
Greater and more extensive government regulations of safety standards and environmental controls will have what effect on short-run and long-run aggregate supply?
In regulated industries, the optimal regulation is to set price such that MC=P
a. True b. False Indicate whether the statement is true or false
If income increases in other countries, then U.S.
A. imports will increase. B. exports will increase. C. imports will decrease. D. exports will decrease.