Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that
A. aggregate demand has been constant while aggregate supply has increased.
B. aggregate demand has increased while aggregate supply has been constant.
C. aggregate demand has increased less than aggregate supply.
D. aggregate demand has increased more than aggregate supply.
Answer: D
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In March a factory used new technology to produce its output. Then in August a fire destroys half the factory. The new technology shifted the factory's PPF ________ and the fire shifted it ________
A) inward; outward B) outward; inward C) outward; outward D) inward; inward
Elasticity of demand equals the ratio of the percentage change in the quantity demanded to the percentage change in the price of the good.
Answer the following statement true (T) or false (F)
Which of the following is TRUE regarding the long run for a firm in monopolistic competition?
A) P = MC = ATC B) P = MC = MR C) ATC = MC = MR D) P = ATC
When a country specializes and trades with other countries, it is most likely that it specializes in goods for which
A) it has a comparative advantage. B) it has an absolute advantage. C) it has no advantage. D) are very costly to produce.