The open economy effect and interest rate effect are two of the reasons why
A) higher price levels increase long-run aggregate supply.
B) growth of the labor force does not contribute to economic growth in wealthy countries.
C) capital formation does not contribute to economic growth in poor countries.
D) the aggregate demand curve slopes downward.
D
You might also like to view...
The solar window manufacturing industry is an example of _____ because it comprises many firms wanting to sell similar but differentiated products
a. monopolistic competition b. oligopoly c. monopoly d. oligopolistic competition
Assume the market was in equilibrium in the graph shown. If the market price gets set to $14, which of the following is true?
A. Some consumers gain surplus, but total surplus falls.
B. Some producers gain surplus, but total surplus falls.
C. Some producers lose surplus, but total surplus rises.
D. Some consumers lose surplus, but total surplus rises.