If the economy is self-regulating and in a recessionary gap, what happens?
A) Wages rise, the SRAS curve shifts leftward, and both Real GDP and the price level rise.
B) Wages fall, the SRAS curve shifts leftward, the price level rises, and Real GDP falls.
C) Wages fall, the SRAS curve shifts rightward, and both the price level and Real GDP fall.
D) Wages fall, the SRAS curve shifts rightward, the price level falls, and Real GDP rises.
E) none of the above
D
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A change in which of the following would NOT shift the supply curve for sneakers?
A) an increase in technology for making sneakers B) an increase in the price of rubber, used to make sneakers C) an increase in the price of sneakers D) None of the above, that is, each change shifts the supply curve
The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is your real income in terms of magazines?
A) 12 magazines B) 6 magazines C) 2 magazines D) $60/month