The short-run aggregate supply curve intersects the long-run aggregate supply curve at:
A. A constant price level
B. The potential level of real output
C. The equilibrium level of aggregate demand
D. The point where real GDP equals nominal GDP
B. The potential level of real output
You might also like to view...
During recessions, unemployment ________ while the budget deficit as a percentage of GDP ________
A) increases; increases B) decreases; increases C) decreases; decreases D) increases; decreases
If the reserve ratio is 0.10, the money multiplier is equal to 5.
Answer the following statement true (T) or false (F)
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
Explain the difference between a tariff and a quota. What impact do tariffs and quotas have on the prices of domestic and imported goods?
What will be an ideal response?