In the short run, a decrease in wage rates, ceteris paribus, shifts the
A) AD curve to the right, causing equilibrium price level to rise and equilibrium Real GDP to increase.
B) AD curve to the left, causing equilibrium price level to fall and equilibrium Real GDP to decrease.
C) SRAS curve to the right, causing equilibrium price level to fall and equilibrium Real GDP to increase.
D) SRAS curve to the left, causing equilibrium price level to rise and equilibrium Real GDP to decrease.
C
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In the figure above, the poorest 40 percent of households receive ________ of total income
A) 20 percent B) 10 percent C) 30 percent D) 15 percent
The Great Recession started in the:
a. U.S. real goods sector. b. U.S. real loanable funds market. c. Foreign exchange market. d. Global real goods market. e. All of the above.
If the overall price level rises from 100 to 150, the aggregate
A. quantity demanded could increase from $5 trillion to $6 trillion. B. quantity demanded could decrease from $5 trillion to $4 trillion. C. demand curve could shift to the right. D. demand curve could shift to the left.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.