The Keynesian short-run aggregate supply (SRAS) curve
A) shows that real Gross Domestic Product (GDP) will increase only if the price level increases.
B) is horizontal.
C) assumes a full-employment level of real Gross Domestic Product (GDP).
D) does not reflect any changes in nominal Gross Domestic Product (GDP).
B
You might also like to view...
The sale and purchase of goods and services across national borders is known as _____.
a. entrepreneurship b. importing c. trade d. exporting e. angel investing.
If two countries engage in Free Trade following the principles of comparative advantage, then
A) neither relative prices nor relative marginal costs (marginal rates of transformation-MRTs) in one country will equal those in the other country. B) both relative prices and MRTs will become equal in both countries. C) relative prices but not MRTs will become equal in both countries. D) MRTs but not relative prices will become equal in both countries. E) trade will be unrestricted, regardless of relative costs and MRTs.
Individuals who fully insure their house and belongings against fire
A) have wasted their money if a fire does not occur. B) generally do so in order that their after-fire wealth can be equal to their before-fire wealth. C) generally do so in order that their after-fire wealth can be higher than their before-fire wealth. D) generally do so in order to guarantee that the worst outcome, a fire with no insurance, does not occur. E) can never come out as well financially after a fire as they were before it.
Which of the following is a consequence of the formation of a cartel? a. Output produced will be lower than the equilibrium output. b. Prices charged will be lower than the equilibrium price
c. Consumer surplus will increase. d. Products will be more innovative.