Assume the aggregate demand curve intersects the aggregate supply curve in its intermediate range. A decrease in the aggregate supply curve will
A. increase the price level and decrease real GDP.
B. decrease the price level and increase real GDP.
C. increase both the price level and real GDP.
D. decrease both the price level and real GDP.
A. increase the price level and decrease real GDP.
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In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts.
Which diagram above illustrates the effect on the natural-gas market, with the widespread use of "fracking" or hydraulic fracturing by gas-drilling companies?
A. (1) B. (2) C. (3) D. (4)
Refer to Figure 9-5. The increase in domestic producer surplus as a result of the tariff is equal to
A) $11.25 million. B) $18 million. C) $32.5 million. D) $45 million.
Rank the components of aggregate demand by their sensitivity to changes in the real interest rate. Start with the most sensitive to the least sensitive.
What will be an ideal response?
The fish in the ocean are what type of market resource?
a. Land. b. Capital. c. Entrepreneurial ability. d. Labor.