When the price level rises, the quantity of real GDP supplied ________ because ________
A) increases; new businesses open
B) increases; businesses fail and have to shut their doors
C) decreases; businesses fail and have to shut their doors
D) increases; AS curve shifts rightward
E) decreases; new businesses open
A
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The sustainable upper limit of real GDP is a level of GDP that is
A) greater than potential GDP, but by how much greater is unknown and controversial. B) less than potential GDP, but by how much less is unknown and controversial. C) potential GDP. D) determined only by what is the full employment equilibrium in the labor market. E) None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.
"Demand" is a series of quantities demanded, one for each person in the market
a. True b. False Indicate whether the statement is true or false
For the output maximizing monopolist
A. long-run marginal cost equals demand. B. marginal revenue equals marginal cost. C. price equals average total cost. D. average total cost must be falling.
The economy moves from point A, where it produces 100 units of X and 200 units of Y, to point B, where it produces 200 units of X and 150 units of Y. It follows that
A) point A is a productive inefficient point. B) point A may be a productive inefficient point. C) point A may be a productive efficient point. D) point B is a productive efficient point. E) b and c