In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to
A) $15.5 trillion.
B) $16.0 trillion.
C) $16.5 trillion.
D) None of the above answers is correct.
C
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Inventory reductions are a signal indicating that
A. the economy is close to disaster. B. the Dow Jones Industrial Average will fall. C. manufacturers need to increase production. D. producers need to lower prices.
A decrease in demand is shown graphically by a shift of the demand curve to the _______.
Fill in the blank(s) with the appropriate word(s).
The fastest growing productivity increases in the United States have occurred in the personal services sector.
Answer the following statement true (T) or false (F)
The short-run aggregate supply curve is:
A. Vertical at all levels of output. B. Horizontal at all levels of output. C. Downward sloping to the right. D. Upward sloping to the right.