When a nonprice change affects any of the four components of GDP the:
A. aggregate demand curve will shift left or right.
B. economy will move up or down along the aggregate demand curve.
C. aggregate demand curve will remain unaffected.
D. aggregate supply with shift left or right.
A. aggregate demand curve will shift left or right.
You might also like to view...
Although tacit collusion can enhance the price-setting power of the participating firms, it can also result in greater efficiency in production, which also benefits society
Thus, it is not immediately clear, a priori, when tacit collusion actually hurts or helps consumers. Indicate whether the statement is true or false
What is the "Hotelling rule" for a monopolist?
A) Price minus marginal cost must rise at exactly the rate of interest. B) Price plus marginal cost must rise at exactly the rate of interest. C) Marginal revenue minus marginal cost must rise at exactly the rate of interest. D) Marginal revenue and marginal cost must be independent of the rate of interest.
All else equal, a decrease in the rate of inflation ________ planned spending and ________ short-run equilibrium output.
A. decreases; decreases B. increases; decreases C. decreases; increases D. increases; increases
Arlene makes earrings in the shape of the mascot of a local university. Last year Arlene made 250 pairs of earrings, which she sold to the university bookstore for $10 each. Arlene works out of her home, so her only cost is $3 per pair for materials and $85 for tax help. If Arlene didn't produce earrings, she would spend her time babysitting her nephews and make about $500 per year. Which of the following is TRUE?