If the aggregate supply curve is vertical, an increase in aggregate demand will
A) increase both real and nominal GDP by the full multiplier effect.
B) increase real GDP but not nominal GDP.
C) increase the price level but not real GDP.
D) increase real GDP by less than the full multiplier effect because of rising prices.
C
Economics
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In the short run, total variable cost
A) includes the cost of capital. B) includes the cost of labor. C) includes both the cost of capital and of labor. D) does not change when production changes. E) is positive when output is zero.
Economics
Briefly explain what failure to properly use all capital equipment would do to a production possibilities curve and what that means for the economy.
What will be an ideal response?
Economics