In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
a. The price level and real GDP will both rise.
b. The price level will not change, but real GDP will increase.
c. The price level will rise, but real GDP will not change.
d. Both the price level and real GDP will not change.
a
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If the output gap equals -200 billion, then:
A. potential GDP is lower than actual GDP. B. there is no cyclical unemployment. C. cyclical unemployment equals the sum of structural and frictional unemployment. D. there is a recessionary gap.
Cortney is going on a job interview. What should she do before the interview?
a. ask those people she uses as references for permission b. research the company before she goes c. clean up her social media pages d. all
Why are long-run costs always less than or equal to short-run costs?
a. In the long run, technological change can occur, leading to lower costs over time. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. b. In the long run, employees are more productive so the firm's costs will be lower. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. c. In the long run, all inputs are flexible so the firm can minimize all costs. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. d. In the long run, firms can choose how much output to produce based on demand, which will lead to lower costs. This means that long-run costs will always be less than or equal to short-run costs at the same level of output.
With graph on interest rate and planned investment (downward sloping): Planned investment could decrease from $12 million to $8 million if
A) the government increases government purchases. B) the Fed increases the money supply. C) the government reduces government purchases. D) the government increases net taxes.