A central bank that accommodates an aggregate supply shock
a. increases the money supply, making the inflation rate rise.
b. increases the money supply, making the inflation rate fall.
c. decreases the money supply, making the inflation rate rise.
d. decreases the money supply, making the inflation rate fall.
a
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U.S. real GDP per person grew rapidly in the early 1960s. The table above has U.S. real GDP and population for 1961 and 1962
a. What was U.S. real GDP per person in 1961? b. What was U.S. real GDP per person in 1962? c. Between 1961 and 1962, how rapidly did U.S. real GDP per person grow?
When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the
A) money price of corn. B) relative price of corn. C) income effect. D) substitution effect.
If sellers respond to very small changes in price by adjusting their quantity supplied by extremely large amounts, the price elasticity of supply approaches
a. zero, and the supply curve is horizontal. b. zero, and the supply curve is vertical. c. infinity, and the supply curve is horizontal. d. infinity, and the supply curve is vertical.
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What will be an ideal response?