We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run
A) technology is fixed but it is not in the short run.
B) the price level is constant but in the short run it fluctuates.
C) the aggregate supply curve is horizontal while in the short run it is upward sloping.
D) real GDP equals potential GDP.
D
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Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this
a. it is only necessary that long-run aggregate supply shifts right over time. b. it is only necessary that aggregate demand shifts right over time. c. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must shift farther. d. None of the above cases would produce rising prices and growing real GDP over time.
Under a pure gold standard
A. all currencies are defined in terms of gold and these rates are fixed. B. the dollar is tied to gold and all other currencies are fixed relative to the dollar. C. all foreign exchanges involve gold for goods and services. D. all trade involves government agencies.
At a given point in time, if all past deficits and surpluses were added, we would get the
A. Ricardian model. B. debt. C. crowding-out model. D. total amount of excess burden.
In investment banking the "spread" is the difference between
A) the value of a firm's assets and the value of its liabilities. B) the bid and asked prices on a bond. C) the price of new capital guaranteed to the issuing firm and the price that can be obtained in the market. D) the price of a new stock issue and the price of an equivalent new bond issue.