Which of the following is an effect of an increase in the price level in an economy?
a. The real value of dollar-denominated assets will increase
b. The aggregate expenditure line will shift upward.
c. The equilibrium real gross domestic product will decrease.
d. There will be downward movement along a particular aggregate demand curve.
e. The aggregate demand curve will shift rightward.
c
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According to the Taylor Rule, for a given inflation rate, ________
A) every percentage point increase in the inflation rate increases the federal funds rate by 1.5 percentage points B) if bank reserves double, the federal funds rate should double C) every percentage point increase in the nominal interest rate increases the federal funds rate by 1 percentage point D) if nominal output doubles, the federal funds rate should double
Typically a firm's economic profit will be
A) greater than its accounting profit. B) less than its accounting profit. C) equal to its accounting profit. D) equal to its accounting profit minus its tax liability. E) equal to its accounting profit plus the market value of any unsold inventory.