The quantity of real GDP supplied ________ when the price level increases because ________
A) increases; the real wage rate falls
B) decreases; investment increases
C) increases; the quantity of money increases
D) increases; aggregate demand increases
E) decreases; the real wage rate rises
A
You might also like to view...
A rise in the price of cabbage from $14 to $18 per bushel increases the quantity supplied from 4,000 to 6,000 bushels. The elasticity of supply is
A) 0.6. B) 0.8. C) 1.0. D) 1.6.
If a U.S. firm buys tulips from a Dutch firm and the Dutch firm uses the dollars it gets to buy U.S. stocks, the U.S. trade balance ________ and the U.S. financial account ________
A) rises; rises B) rises; falls C) falls; falls D) falls; rises
Over time, which of the following will most likely result from a depreciation in the exchange rate of the dollar?
a. Inflation will decline. b. Foreign goods will cost Americans less, and therefore, the imports of Americans will rise. c. U.S. goods exported abroad will cost less in foreign countries, so foreigners will buy more of them. d. U.S. goods exported abroad will cost more in foreign countries, so foreigners will buy fewer of them.
A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward
a. work effort. b. loyalty to the firm. c. years of schooling. d. years of experience.