Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP does not rise?
A) SRAS shifted to the right by more than LRAS. B) AD shifted to the right by more than SRAS.
C) SRAS and AD do not shift. D) AD shifted to the right by less than SRAS.
C
You might also like to view...
When the use of a communally owned resource has no price, then people will
A. use too much of this resource. B. use less of the resource than usual. C. use another resource altogether. D. not use this resource.
In the above table, the average variable cost of producing 14 units of output is
A) $0.175. B) $5.71. C) $7.86. D) $10.00.
In the 1980s, the number of bank failures increased dramatically in the United States, most of which were uninsured
a. True b. False Indicate whether the statement is true or false
What will happen to unemployed retail workers if the government is unable to target stimulus spending at the retail sector?
A. Most will become discouraged and leave the labor force. B. They may eventually find work after government spending works its way through the economy. C. They may eventually find work after the Fed reduces tax rates, increasing household consumption spending. D. They will remain permanently unemployed unless they find work in another sector of the economy.