Why does an increase in the price level cause a decrease in real GDP demanded?
a. Consumer wealth increases.
b. Net exports will increase.
c. Interest rates decrease and cause higher investment.
d. Net exports will decrease.
d
You might also like to view...
Why do necessities tend to have demand that is price inelastic, while luxuries tend to have demand that is price elastic?
What will be an ideal response?
In a competitive constant-cost industry, an increase in consumer demand leads to
a. a decrease in output b. high interest rates c. an increase in output d. inflation e. a decrease in resource employment
The backward-bending supply curve for labor shows how an increase in wages affects the number of hours worked. The “backward bend” is the part of the curve that shows that some people:
a. have no flexibility in the number of hours they work. b. work more hours when income rises. c. work more hours when income falls. d. work fewer hours when income rises.
The buyer of a derivative is ________ assuming risk relative to the seller.
A. less comfortable B. more comfortable C. less open to D. just as comfortable