The labels for the axes of an aggregate supply curve should be:
A. Real domestic output for the vertical axis and price level for the horizontal axis
B. Real domestic output for the horizontal axis and price level for the vertical axis
C. Real employment for the vertical axis and price level for the horizontal axis
D. Aggregate demand for the vertical axis and real national output for the horizontal axis
B. Real domestic output for the horizontal axis and price level for the vertical axis
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How is the equilibrium exchange rate determined?
What will be an ideal response?
The effect of a drop in business confidence on the evaluation of MPK shifts the IS curve to the ________. Suppose the LM curve is fixed
The resulting ________ in the interest rate works through the accelerator model to ________ the fall in equilibrium output. A) left, rise, increase B) left, rise, more than offset C) left, fall, offset part of D) right, rise, offset part of E) right, fall, more than offset
Which is least likely to help in understanding who bears the tax incidence?
A. Supply elasticity B. Demand elasticity C. Who the tax is levied on D. Whether or not supply is fixed
Real GDP differs from nominal GDP in that nominal GDP measures
A. output adjusted for inflation. B. real output of goods and services. C. output of goods and services at current prices. D. real income adjusted for changes in the price level.