If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
You might also like to view...
GDP calculations tend to exclude all of the following EXCEPT
A) environmental quality. B) salaries paid to government employees. C) illegal transactions. D) work that people do for themselves in their own homes.
The percent increase in the CPI from one year to the next is a measure of the
A) real interest rate. B) inflation rate. C) GDP deflator. D) unemployment rate.
What is meant by saying that economics is an empirical science?
A) Economic theories will be tested by seeing how well they correspond to people's declared preferences. B) Economic theories cannot be tested because there is no means of measuring economic variables with adequate precision. C) Economic theories cannot be tested because economic variables change too quickly. D) Economic theories will be tested by seeing how well they correspond to real-world phenomena.
The most meaningful measure of economic growth is a. the employment rate
b. the unemployment rate. c. real GDP. d. real GDP per capita.