In the intermediate range of the aggregate supply curve, higher aggregate demand will increase:
a. both the price level and real GDP.
b. real GDP without raising the price level.
c. the price level without affecting real GDP.
d. the price level but reduce real GDP.
a
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If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, we would expect the:
A. labor-supply curve in that market to shift left. B. labor-demand curve in that market to shift left. C. labor-supply curve in that market to shift right. D. labor-demand curve in that market to shift right.
Assume that cotton is a normal good. Which of the following would cause both the equilibrium price and equilibrium quantity of cotton to increase?
A) an increase in consumer income B) a drought that sharply reduces cotton output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of cotton
As a percentage of GDP, the largest deficits in the twentieth century
A. were caused by huge tax cuts in the 1980s. B. resulted from spending increases in the 1990s. C. resulted from World War II. D. resulted from the Vietnam War.
When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. This is an example of Ferrari raising funds through
A) a financial market. B) reinvesting retained earnings. C) dividend reinvestment. D) a financial intermediary.