The combination of inflation and real growth shown by the AD curve give:
A. the same level of inflation.
B. the same level of money supply growth.
C. the same level of real GDP growth.
D. the same level of nominal GDP growth.
Ans: D. the same level of nominal GDP growth.
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Over the period 1980–2007, the annual rate of increase in government spending on elementary, secondary, and higher education, measured in constant dollars, was approximately
a. 1 percent b. 3 percent c. 10 percent d. 15 percent e. 25 percent
When prices rise, what happens to income?
a. It goes down. b. It buys less. c. It rises to meet prices. d. It is used to buy different things.
The government is a player in the U.S. labor market in part because the government
A. funds employer-based health insurance benefits. B. assigns potential workers to particular industries. C. suggests a minimum wage for firms to pay. D. determines who is allowed to attend college. E. sets workplace safety rules and regulations.
Holding everything else constant, an increase in the price of raisins will result in
A) a decrease in the quantity of raisins demanded. B) an increase in the demand for raisins. C) a decrease in the supply of raisins. D) an increase in the quantity of raisins demanded.