A normative statement concerns
A) what is provable.
B) what is correct.
C) what is incorrect.
D) a value judgment.
D
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Refer to Table 11.1. What is the value of GDP?
A) $7,450. B) $7,250. C) $7,150. D) $7,350.
Economic growth will
A) shift the production possibilities curve inward. B) shift the production possibilities curve outward. C) shift along the production possibilities curve toward the X-axis. D) be a movement from inside the productions possibilities curve to the curve itself.
Suppose the economy starts off producing Natural Real GDP. Next, aggregate supply rises, ceteris paribus. As a result, the price level falls in the short run. In the long run, when the economy has moved back to producing Natural Real GDP, the price level will be
A) higher than it was in short-run equilibrium. B) lower than it was in short-run equilibrium but higher than it was originally (before aggregate supply rose). C) lower than it was originally (before aggregate supply rose). D) equal to what it was originally (before aggregate supply rose).
Demand determines price entirely when
A. demand is perfectly inelastic. B. demand is downward sloping. C. supply is perfectly elastic. D. supply is perfectly inelastic.