The effect of an increase in aggregate supply is a(n):
A. increase in the general level of prices and a decrease in real output.
B. increase in the general level of prices and an increase in real output.
C. decrease in the general level of prices and a decrease in real output.
D. decrease in the general level of prices and an increase in real output.
Answer: D
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If a firm raised its price and discovered that its total revenue fell, then the demand for its product is
A) relatively elastic. B) perfectly inelastic. C) perfectly elastic. D) relatively inelastic.
In which of the following cases does the Robinson-Patman act not apply?
a. There are no cost differences to serving different groups b. Discounts are never offered to meet competition c. The industry does not engage in promotional allowances d. All of the above
When there is economy-wide equilibrium, there is a tendency for
A) total output to rise. B) total output to fall. C) total output to remain unchanged. D) prices to fall. E) prices to rise.
?Random sampling complicates the analysis of cross-sectional data.
Answer the following statement true (T) or false (F)