According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand increases
A) real GDP will fall and price level will remain constant.
B) real GDP will rise and price level will remain constant.
C) real GDP will rise and price level will fall.
D) real GDP will rise and price level will rise.
B
You might also like to view...
To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whether the goal of maximum employment is being achieved, the Federal Reserve monitors ________
A) GDP price deflator; real GDP B) core PCE deflator inflation rate; the output gap C) core CPI inflation rate; the natural unemployment rate D) CPI; the gap between nominal GDP and real GDP E) core GDP deflator inflation rate; the natural unemployment rate
Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase
As a result, the market produces ________ education and training. A) increasing; too little B) increasing; too much C) decreasing; too little D) decreasing; too much
Why might improvements in children's public health care services lower fertility?
What will be an ideal response?
If the production possibilities curve is a straight line: a. opportunity costs increase as output of either commodity is expanded
b. resources are not equally substitutable between the production of the goods. c. opportunity costs are negative. d. as an increasing quantity of resources are shifted from one manufacturing process (good Y) to another (good X), there is no increase in opportunity cost.