Which of the following is the most likely result of a contractionary gap?
a. Market forces will increase nominal resource costs in the long run
b. Short run aggregate supply will shift to the left
c. Market forces will lower nominal resource costs
d. Wages will increase causing wage push inflation
c
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A decrease in supply means that:
a. demand will increase by the same amount. b. the quantity demanded will increase. c. there is a movement down and to the left along the supply curve. d. the quantity supplied at every price will decrease. e. the supply curve will shift out and to the right.
Unions often have the power to push wages above competitive levels
a. True b. False Indicate whether the statement is true or false
People cope with uncertainty about the future:
A. in very similar ways, regardless of the situation. B. in many ways, such as buying insurance. C. exactly the same way, regardless of the situation. D. by always avoiding it.
Suppose nominal GDP in 2009 was $100 billion and in 2010 it was $260 billion. The general price index in 2009 was 100 and in 2010 it was 180. Between 2009 and 2010 the real GDP rose by approximately:
A. 160 percent. B. 44 percent. C. 37 percent. D. 80 percent.