Along the classical or vertical range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
a. both the price level and real GDP.
b. only real GDP.
c. only the price level.
d. real GDP and reduce the price level.
c
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Policy is conducted via discretion if policymakers
a. announce and achieve a constant money supply. b. announce and achieve a constant interest rate. c. are free to respond to changes in economic conditions on a case-by-case basis. d. announce in advance how they will respond to changes in economic conditions.
The optimal level of rights protection is _____
a. zero b. the marginal cost of additional protection equals the market price of the good c. the marginal cost of additional protection equals the marginal benefit of the good d. absolute
Federal housing policies have substantially reduced the established patterns of housing segregation
Indicate whether the statement is true or false
If the GDP gap is positive, then:
A. The inflation rate is falling B. The unemployment rate is rising C. Potential GDP is greater than actual GDP D. Actual GDP is greater than potential GDP