If the price level increases by more than expected, output can be expected to decrease as a result
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $8. B) $20. C) $28. D) $36.
The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller B) smaller; smaller C) smaller; larger D) larger; larger E) None of the above because the tax wedge does not affect employment or potential GDP.
During the boom years of the 1920s, bank failures were quite
A) uncommon, averaging less than 30 per year. B) uncommon, averaging less than 100 per year. C) common, averaging about 600 per year. D) common, averaging about 1000 per year.
Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm's:
A) ME curve shifts leftward. B) AE curve shifts rightward. C) ME and AE curves shift rightward. D) MV curve shifts rightward.