Given an aggregate supply curve, a decrease in aggregate demand will:
a. increase the real interest rate
b. increase real GDP.
c. increase the price level.
d. decrease the real exchange rate.
e. decrease real GDP.
e
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People on a fixed income are adversely affected by inflation.
a. true b. false
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this
information we can conclude that Harry's production of large pepperoni pizzas this year: A. increased nominal GDP by $20,000 but left real GDP unchanged. B. increased nominal GDP by $120,000 and increased real GDP by $100,000. C. left nominal GDP unchanged but increased real GDP by $20,000. D. increased nominal GDP by $120,000 but left real GDP unchanged.
Sources of increasing returns that help raise productivity growth include the following, except:
A. More specialized inputs B. Spreading of development costs C. Network effects D. Low unemployment
In a small open economy, Sd = 200 + 500rw and Id = 300 - 200rw. If rw = 0.1, then net exports =
A) -50. B) -30. C) 30. D) 50.