A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run
A) the price level; real GDP
B) real GDP; real GDP
C) the price level; the price level
D) real GDP; the price level
Answer: D
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Which of the following is not an indicator that is used to compute the Human Development Index?
a. life expectancy at birth. b. real GDP per capita. c. infant mortality rate. d. adult literacy rate.
If MUx/Px > MUy/Py, the consumer can increase utility by buying more of good x, which will cause the MUx to rise
a. True b. False
Backward induction will not lead to a determinate sequence of actions for:
A. simultaneous move games. B. sequential games. C. mixed strategy games. D. games with dominant strategies.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.