There is no systematic relationship between the price level and the level of aggregate output when
A. both aggregate supply and aggregate demand are changing simultaneously.
B. aggregate demand is changing, but aggregate supply is not.
C. aggregate supply is changing, but aggregate demand is not.
D. aggregate demand is negatively sloped.
Answer: A
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A) household production B) expenditure on resources used to protect the environment C) services such as hair styling D) government weather satellites E) capital goods
Why does perfect competition guarantee a Pareto optimal distribution of goods between two people? Under perfect competition,
A) everyone has the same preferences. B) everyone faces the same prices. C) everyone consumes the same quantity of both goods. D) goods are homogeneous.
In 1979 and 1980,
a. the U.S. inflation rate as measured by the GDP deflator was higher than that measured by the CPI, and the difference was explained by rapidly rising prices of goods exported by the U.S. b. the U.S. inflation rate as measured by the CPI was higher than that measured by the GDP deflator, and the difference was explained by rapidly rising prices of goods exported by the U.S. c. the U.S. inflation rate as measured by the GDP deflator was higher than that measured by the CPI, and the difference was explained by rapidly rising oil prices. d. the U.S. inflation rate as measured by the CPI was higher than that measured by the GDP deflator, and the difference was explained by rapidly rising oil prices.
A change in the money supply can affect one or more of the components of spending and therefore shift the short-run aggregate supply (SRAS) curve
Indicate whether the statement is true or false