Which of the following by itself is consistent with the directions that the price level and real GDP changed at the onset of the Great Depression?
a. aggregate demand shifted right
b. aggregate demand shifted left
c. aggregate supply shifted right
d. aggregate supply shifted left
b
You might also like to view...
Banking failures result when
(a) banks do not hold 100 percent of their customers' deposits in their vaults. (b) banks make loans. (c) bank withdrawals exceed their reserves. (d) all of the above occur.
When sellers have more information about hidden characteristics of a good than buyers have, more low-quality units are likely to be sold than high-quality units. This is
a. the law of diminishing marginal returns b. the law of natural selection c. the winner's curse d. the lemons problem e. the problem of common pools
Graphs are valuable because they facilitate interpretation of data.
Answer the following statement true (T) or false (F)
In a perfectly competitive market, entry and exit are the driving forces behind a process that, in the long run, pushes the price _____
a. to the zero-profit point b. to the shutdown point c. below the average variable cost d. above the zero-profit point