Starting from short-run equilibrium, the following occurs: individuals expect higher (future) incomes and wage rates rise. What is the effect on the price level and Real GDP in the short run?
A) The price level rises and Real GDP rises.
B) The price level falls and Real GDP falls.
C) The price level rises, but the effect on Real GDP cannot be determined.
D) Real GDP rises, but the effect on the price level cannot be determined.
E) Real GDP falls, but the effect on the price level cannot be determined.
C
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A) shorter; smaller B) longer; smaller C) longer; greater D) shorter; greater
Which of the following phrases best captures the notion of efficiency?
a. absolute fairness b. equal distribution c. minimum waste d. equitable outcome
A peak is the...
What will be an ideal response?