The horizontal segment of the aggregate supply curve
a. shows that real GDP can increase only by affecting the economy's price level
b. shows that real GDP can increase without affecting the economy's price level
c. depicts a positive relationship between real GDP and the price level
d. depicts a negative relationship between real GDP and the price level
e. marks the full-employment level of real GDP
B
You might also like to view...
Assume equilibrium real GDP per year is equal to full-employment real GDP. Which of the following will cause a recessionary gap?
A) a discovery of a new raw material B) a reduction in aggregate demand C) a temporary reduction in the price of oil D) an increase in aggregate demand
The expenditure multiplier is typically
A) equal to 1. B) greater than 1. C) negative. D) less than 1 but greater than 0. E) greater than 10.
If Joe has budget constraint C in the graph shown, what is the relative price of three gallons of milk?
This graph shows three different budget constraints: A, B, and C.
A. 2 cases of soda
B. 4 cases of soda
C. $12
D. $9
According to the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good because the domestic price is greater than the world price.
B. export this good because the domestic price is greater than the world price.
C. import this good because the world price is greater than the domestic price.
D. export this good because the world price is greater than the domestic price.