A rightward shift of long-run aggregate supply without any change in aggregate demand
A) results in a lower price level.
B) increases the price level along with an increase in real GDP.
C) will leave real GDP unchanged.
D) increases the price level without any change in real GDP.
A
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Which of the following was true of the U.S. job market between 1929 and 2011? a. The number of jobs created in the organized sector was less than that in the unorganized sector. b. The number employed people increased by less than five percent
c. The average education of workers increased over the years. d. The productivity of workers declined over the years. e. The growth in employment opportunities was slower compared to the growth in population.
Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
a. $15 billion. b. $20 billion. c. $50 billion. d. $80 billion.
Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for
a. hair gel to increase. b. razors to increase. c. combs to increase. d. shampoo to increase.
Suppose that the Fed purchases a $1,000 government bond from you. If you deposit the entire $1,000 in your bank, what is the total potential change in the money supply as a result of the Fed’s action if reserve requirements are 10 percent?
A. $10,000 B. $5,000 C. $3,000 D. $2,000