Use the following graph to answer the next question.
Assume the economy is initially located on AD0 and AS0. An increase in resource prices would result in price ________ and real domestic output ________.
A. F; A
B. F; C
C. G; B
D. E; B
Answer: C
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Refer to the figure below. If the supply curve returns to its initial level of S a , the amount of consumer surplus will return to its original level.
A. True
B. False
C. Uncertain
Based on the circular flow model, money flows from households to businesses in:
a. both factor and product markets. b. product markets. c. factor markets. d. neither factor nor product markets.
If a production function has the property called __________, then doubling all inputs causes the amount of output to double as well
Fill in the blank(s) with correct word
The Volcker disinflation
a. had virtually no impact on output, just as the classical dichotomy suggested. b. was associated with rising output, perhaps due to expansionary fiscal policy. c. caused output to fall, but by less than the typical estimate of the sacrifice ratio suggested. d. None of the above is correct.