If the price level is constant in the short run,
A) the short-run aggregate demand curve is horizontal.
B) the short-run aggregate demand curve is vertical.
C) the short-run aggregate supply curve is horizontal.
D) the short-run aggregate supply curve is vertical.
C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Which of the following would increase the current account balance of the United States?
A) an increase in the balance of trade B) an increase in imports C) an increase in the amount of income U.S. companies pay out to foreigners who own investments in the United States. D) an increase in the amount of money the U.S. government sends in foreign aid to other countries
The difference between the ________ for a good and the ________ is called consumer surplus
A) lowest price a consumer is willing to pay; price the consumer actually pays B) highest price a consumer is willing to pay; price the consumer actually pays C) highest price a consumer is willing to pay; lowest price a consumer is willing to pay D) price the consumer actually pays; actual cost to the producer
A business cycle trough is a
A) small positive deviation from trend in real GDP. B) relatively large positive deviation from trend in real GDP. C) small negative deviation from trend in real GDP. D) relatively large negative deviation from trend in real GDP.