When aggregate demand increases,
A) the price level is likely to rise as GDP rises.
B) the price level is likely to fall as GDP rises.
C) aggregate supply will shift to the right.
D) aggregate supply will shift to the left.
A
You might also like to view...
Two firms, Industrio and Capitalista, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Both firms currently use process A, and each emits 4 tons of smoke per day. The government is considering two plans to reduce pollution: requiring both firms to reduce pollution by 25 percent or auctioning pollution permits. Each permit would entitle the owner to emit one ton of smoke per day. Without a permit, no smoke can be emitted. Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Industrio ($/day) $350$400$500$700$1,000 Cost to Capitalista
($/day) $225$250$290$400 $600If neither firm had any permits, Industrio would be willing to pay up to ________ for the right to emit 1 ton of smoke, and Capitalista would be willing to pay up to ________ for the right to emit 1 ton of smoke. A. $50, $50 B. $50; $25 C. $1000, $600 D. $300, $200
Surplus refers to:
A. the difference between the price at which a buyer or seller would be willing to trade and the actual price. B. the difference between the willingness to pay and the actual price paid. C. the difference between the willingness to sell and the actual price accepted. D. All of these are true.
On May 12, 2011 the U.S. dollar was worth 0.70 euros. How many dollars did it take to buy one euro?
a. 0.70 b. 1.43 c. 1.70 d. 2.70
In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of tea will reduce the quantity demanded of tea." (II) "An increase in the price of tea will reduce the demand for sugar used in tea."
a. in both statements I and II b. in statement I only c. in statement II only d. in neither statements I nor II