In the short-run, an increase in the price of raw materials will ________ the price level and ________ real GDP
A) raise; increase
B) lower; increase
C) lower; decrease
D) raise; decrease
E) raise; not change
D
You might also like to view...
Relative price changes indicate
A) all prices move together. B) all exchange rates move together. C) some prices increase faster than others. D) exchange rates appreciate faster than prices change.
Improvements in productivity shift the aggregate supply curve outward.
Answer the following statement true (T) or false (F)
Laws that restrict the smoking of cigarettes in public places are examples of government intervention that is intended to reduce
a. efficiency. b. equality. c. externalities. d. productivity.
The value of the dollar relative to the euro would decrease if
A. the demand for dollars increases and the supply of euros increases. B. the supply of dollars increases and the demand for euros decreases. C. the demand for dollars decreases and the supply of euros increases. D. the supply of dollars increases and the demand for euros increases.