In the vertical segment of the aggregate supply curve,
a. different levels of GDP correspond with high unemployment.
b. competition among producers for already-employed resources can succeed only in lowering the economy's price level.
c. full employment is achieved.
d. producers are able to hire more workers at lower wages.
e. increases in GDP are due solely to production gains.
c
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A key factor that leads to economic growth is
A) human capital accumulation. B) increasing current consumption. C) avoiding the opportunity cost of investment. D) Both answers A and B are correct.
Assume the United States is the "domestic" country and Switzerland is the "foreign" country. Which of the following might decrease the real exchange rate between the United States and Switzerland?
A) a depreciation of the franc B) an appreciation of the dollar C) a decrease in the price level in Switzerland D) a decrease in the price level in the United States