When the price level rises from 110 to 115, the aggregate level of GDP supplied rises from $80 billion to $120 billion
This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the price level.
A) positive; short-run B) negative; short-run
C) positive; long-run D) negative; long-run
A
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
On the graph above, an example of a negative demand shock is the movement from point ________ to point ________
A) F; G B) H; I C) F; H D) H; F E) none of the above
Those who argue that welfare programs are a drag on the economy are of the view that welfare programs funded by taxes:
a. reduce the opportunity cost of labor. b. raise the incidence of poverty and income inequality. c. raise the incentive to work. d. reduce the tax-liability of the tax-payers. e. reduce the demand for labor.
These are the cost and revenue curves associated with a firm.
If the firm in the graph were producing Q2 and charging P2, it:
A. represents the perfectly competitive outcome. B. is an outcome that eliminates deadweight loss. C. is an efficient outcome. D. All of these statements are true.