If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to a sagging stock market, then:
a. Price index rises, and real GDP falls.
b. Price index rises, and the change in real GDP is uncertain.
c. Price index falls, and real GDP rises.
d. Price index falls, and the change in real GDP is uncertain.
e. Price index falls, and real GDP falls.
.D
You might also like to view...
Why do people keep currency in their pockets when bank deposits pay interest?
A) Because banks might steal your money. B) Because currency is more liquid. C) Because bank deposits lose value due to inflation. D) Because bank deposits lose value due to changes in interest rates.
Suppose the real gross domestic product (GDP) equals $100 billion this year and the nominal gross domestic product (GDP) is $200 billion. This implies that the price level has increased by _____
a. $200 billion b. 50 percent c. $100 billion d. 100 percent e. 200 percent
Which of the following products witnessed a high growth in the number of producers within a few years of market introduction, but was followed by a fast and substantial shakeout?
a. Tortilla b. Penicillin c. Livestock d. Fastfood
An improvement in technology will tend to cause a society's production possibilities curve to shift outward
a. True b. False Indicate whether the statement is true or false