In the long run, an increase in the aggregate price level:
A. decreases real output.
B. increases real output.
C. increases spending.
D. doesn't change real output.
Answer: D
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The monopolist is a
A) price taker who tries to find the profit-maximizing rate of output. B) price taker who tries to find the profit-maximizing price. C) price searcher who tries to find the profit-maximizing price-output combination. D) price searcher who tries to find the rate of output that maximizes price.
If the federal government is seeking to reduce large budget deficits, the flexibility of fiscal policy is
a. limited when trying to combat inflation. b. increased when trying to combat unemployment. c. limited when trying to combat unemployment. d. unaffected whether trying to combat inflation or unemployment.
One of the key factors that determine an economy's real GDP is labor productivity, which is a measure of
a. output per hour of work. b. labor force per hour. c. input per hour worked. d. total hours worked.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.