If the aggregate supply curve is upward sloping, an increase in aggregate demand will
A. reduce real GDP but increase the price level.
B. increase real GDP but reduce the price level.
C. reduce both real GDP and the price level.
D. increase both real GDP and the price level.
D. increase both real GDP and the price level.
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Why is the Fed referred to as the "lender of last resort"?
What will be an ideal response?
If the price elasticity of demand for apples is greater than 1, an increase in apple prices will
A) raise total revenue. B) lower total revenue. C) not affect total revenue. D) either raise or lower total revenue, but it is impossible to determine which.
Which of the following is a short run adjustment? a. A bakery hiring two additional bakers
b. Two new firms enter the textile industry. c. Three firms leave the bicycle industry. d. A computer hardware company builds a new factory.
Which of the following examples shows causation?
a. When Terence found out he won the lottery, he jumped up and down with joy. b. When Yuki sat in a chair, he heard an ambulance siren. c. When Terence called a friend to tell him he won the lottery, a bird began to sing merrily outside. d. As the ambulance went by Yuki’s house, he drank his coffee.