The long-run aggregate supply curve shows:
A. the economy's actual growth rate whether things are going well or not.
B. the economy's potential inflation rate if all is going well.
C. the economy's potential growth rate if all is going well.
D. the economy's actual inflation rate whether things are going well or not.
Ans: C. the economy's potential growth rate if all is going well.
You might also like to view...
According to the theory of purchasing power parity, the exchange rate between two countries reflects
A) the interest rates in the two countries. B) the unemployment rates in the two countries. C) government spending in the two countries. D) differences in the overall price levels in the two countries.
Even though points inside a production possibilities curve are attainable, why are they not preferred?
What will be an ideal response?
The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. This means that
A) total income in 2015 was around $17.3 trillion. B) total spending in 2015 was around $17.3 trillion. C) the value of output in 2015 was around $17.3 trillion. D) all of the above are true.
Assume that labor is a variable input. The average wage of workers increases in a purely competitive industry. This change will result in a(n)
A. increase in marginal cost for firms in the industry and an increase in the industry supply curve B. decrease in marginal cost for firms in the industry and a decrease in the industry supply curve C. decrease in marginal cost for firms in the industry and an increase in the industry supply curve D. increase in marginal cost for firms in the industry and a decrease in the industry supply curve