If real GDP is greater than potential GDP, then to restore equilibrium, ________ and the price level ________
A) the aggregate supply curve shifts rightward; falls
B) the aggregate demand curve shifts leftward; rises
C) the aggregate supply curve shifts leftward; rises
D) the aggregate demand curve shifts rightward; falls
E) potential GDP increases; falls
C
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If the initial distribution of two goods between two people is Pareto optimal, which of the following statements is TRUE?
A) It is possible to reallocate the goods between the two people so as to increase the utility of both people. B) It is possible to reallocate the goods between the two people so as to increase the utility of one person without decreasing the utility of the other. C) It is possible to reallocate the goods between the two people so as to increase the utility of one person, but only at the expense of the other person. D) It is impossible to reallocate the goods between the two people so as to increase either person's utility. E) none of the above
Buyers always prefer lower prices to higher prices
Indicate whether the statement is true or false