An increase in government spending, other things constant, will cause a:
a. leftward shift of the aggregate supply curve
b. rightward shift of the aggregate supply curve.
c. leftward shift of the aggregate demand curve.
d. rightward shift of the aggregate demand curve.
e. downward movement along the aggregate supply curve.
d
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As long as the firm illustrated above remains open, it will set a price of ________ per month and it will ________
A) $50; earn an economic profit B) $50; incur an economic loss C) $40; earn an economic profit D) $40; incur an economic loss E) less than $20; incur an economic loss
Along the upward-sloping segment of the aggregate supply curve,
a. when real GDP increases, the price level rises b. when real GDP increases, the price level does not change c. when real GDP decreases, the price level rises d. when real GDP increases, the price level falls e. no relationship exists between changes in real GDP and changes in the price level