The aggregate demand curve tells us the equilibrium level of real GDP corresponding to any price level
a. True
b. False
A
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A larger labor force will allow the economy to produce more total output
Indicate whether the statement is true or false
Explain how each of the following events would affect the long-run aggregate supply curve
a. A lower price level b. A decrease in the labor force c. A decrease in the quantity of capital goods d. Technological change
Suppose a senior college football player approaches an insurance company and seeks to purchase an insurance policy against him receiving a career-ending injury. The insurance company
A) will sell him an insurance policy because the proposal entails uncertainty not risk. B) will sell him an insurance policy because the proposal entails risk not uncertainty. C) will not sell him an insurance policy because the proposal entails uncertainty not risk. D) will not sell him an insurance policy because the proposal entails risk not uncertainty.
An increase in the cost of lumbering activities will:
a. increase the quantity of wood supplied to the furniture market. b. decrease the quantity of wood supplied to the furniture market. c. decrease the supply of wood to the furniture market. d. increase the supply of wood to the furniture market.