An increase in aggregate demand in the long run will most likely result in _____
Fill in the blank(s) with the appropriate word(s).
an increase in the price level but no change in the output level.
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The law of diminishing returns occurs because
A) the marginal product of an additional worker is greater than the marginal product of the previous worker. B) the marginal product of a variable input, such as labor, depends in part on the amount of fixed inputs, such as capital. C) total production decreases as more of the variable inputs are used. D) adding more and more workers leads to a decrease in the quantity of capital.
The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w that maximizes the total wage payment, wL(w). What is the wage-elasticity of labor demand at the maximizing minimum wage?
What will be an ideal response?
Membership in the Federal Reserve System is
a. limited to national banks. b. limited to state banks. c. required of national banks and open to state banks. d. forbidden to state banks.
The long-run aggregate supply curve shows
A. the total amount of planned production for an economy. B. the various quantities of goods consumers will purchase. C. what an economy can produce if resource prices are constant. D. that real GDP can only increase when the price level increases.