The labels for the axes of an aggregate supply curve should be:
A. aggregate demand for the vertical axis and real national output for the horizontal axis.
B. real domestic output for the vertical axis and price level for the horizontal axis.
C. real domestic output for the horizontal axis and price level for the vertical axis.
D. real employment for the vertical axis and price level for the horizontal axis.
Answer: C
You might also like to view...
If a monopoly can perfectly price discriminate,
A) all the demanders pay one price. B) it minimizes its profit. C) it produces the same amount of output as would be produced if the market was a perfectly competitive industry. D) it produces less output than would be produced if the market was a perfectly competitive industry. E) it creates the same amount of consumer surplus as would be created if the market was a perfectly competitive industry.
A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship
If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a A) negative relationship, also called a direct relationship. B) negative relationship, also called an inverse relationship. C) positive relationship, also called a direct relationship. D) positive relationship, also called an inverse relationship.
Assume that targeted inflation is 1 percent. According to the Taylor rule, the federal funds rate is:
a. equal to 2 percent if inflation and output are at their target level. b. equal to 6 percent if inflation is 3 percent, output is at its target level and the Fed's targeted federal funds rate is 2 percent. c. equal to 4 percent if inflation is 2 percent , output is 2 percent above its target level and the Fed's targeted federal funds rate is 2 percent. d. none of the above are correct.
One of the principal factors behind the U.S. trade deficits of the 1990s has been
A. slow growth and recession in many important trading partners. B. rapid growth and inflation in many important trading partners. C. significant depreciation of the dollar. D. rising real interest rates in the United States.