The short-run aggregate supply curve
A) is vertical.
B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant.
C) illustrates the level of potential real GDP.
D) shifts whenever the price level changes.
B
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The case of New Zealand, described in the text, draws what technical conclusion regarding the country's international debt position?
What will be an ideal response?
The increase in the availability of ATMs has caused the cost of acquiring currency to ________ which will cause the currency ratio to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
If the consumption function is expressed as C = a + mpc × YD, then "a" represents
A) autonomous consumer expenditure. B) the marginal propensity to consume. C) the expenditure multiplier. D) disposable income.
If firm-level asymmetric information becomes more severe, then
A) investment demand increases. B) investment demand decreases. C) investment demand does not change. D) it is impossible to tell.