The LRAS curve is ____ with real output levels that ____
a. upward sloping; vary positively with the price level
b. upward sloping; vary negatively with the price level
c. vertical; are equal to the natural level of real output at all price levels
d. vertical; can be either greater than or less than the natural level of real output
c
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The multiplier is
A) the percentage of a given change in income that goes towards consumption. B) the number which is multiplied by an autonomous change which gives the change in the equilibrium level of real GDP. C) the part of consumption that is independent of the level of disposable income. D) the proportion of total disposable income that is consumed.
Which of the following would most likely increase the demand for gasoline?
A. The expectation by consumers that gasoline prices will be higher in the future. B. The expectation by consumers that gasoline prices will be lower in the future. C. A widespread shift in car ownership from SUVs to hybrid sedans. D. A decrease in the price of public transportation.