If potential GDP increases,
A) aggregate supply increases.
B) the money wage rate must have fallen.
C) the quantity of aggregate supply decreases.
D) the price level rises.
E) aggregate supply does not change.
A
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Which of the following can lead to stagflation?
a. A decrease in the money supply b. A decrease in autonomous consumption c. A prolonged increase in oil prices d. An increase in government spending e. A decrease in oil prices
The formal study of economics began when Adam Smith (1723–1790) published his famous book The Wealth of Nations in 1776 . In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and illustrate with an example
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Answer the following statement true (T) or false (F)