Beginning from the full-employment level of real GDP, an increase in one of the components of the aggregate demand curve will increase the:
a. average level of prices (CPI).
b. unemployment rate
c. natural level of real GDP.
d. level of investment spending.
e. level of government spending.
a
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An increase in the real interest rate outside of the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which bundle will Max choose?
A) a B) b C) c D) d
At his current level of output, a monopolist has an MR of $10, an MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve upward sloping, the monopolist
a. is producing his profit-maximizing level of output. b. could increase his profit by increasing his output. c. could increase his profit by increasing his price. d. should exit the market if he has positive fixed cost.
An increase in the interest rate causes the MRP of a resource to fall
a. True b. False Indicate whether the statement is true or false