The aggregate supply curve illustrates that the
A) higher the price level, the greater the quantity of real GDP supplied.
B) higher the price level, the smaller the quantity of real GDP supplied.
C) aggregate demand curve is not needed to determine the aggregate price level.
D) price level does not affect the quantity of real GDP supplied.
E) amount of potential GDP increases when the price level rises.
A
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All else equal, a decrease in the level of imports allowed into the United States ________ the demand for goods and service produced in the United States
A) does not affect B) decreases C) increases D) increases or decreases
Explain the relationship between the real interest rate and investment demand. Compare that relationship to the relationship between expected profit and investment demand
What will be an ideal response?
If firms in a perfectly competitive market are incurring economic losses, then as time passes firms ________ and the market ________
A) enter; demand curve shifts leftward B) enter; supply curve shifts rightward C) exit; demand curve shifts leftward D) exit; supply curve shifts rightward E) exit; supply curve shifts leftward
In a model of consumption and leisure, a drop in the wage will cause workers to work less if tastes are quasilinear in leisure.
Answer the following statement true (T) or false (F)