The aggregate supply curve will be vertical when
A. output can be increased without an increase in the price level.
B. the economy is operating at the full employment level of real GDP.
C. the output and price level rise together.
D. aggregate demand is shifting to the left.
B. the economy is operating at the full employment level of real GDP.
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The consumer price index is
A) an average of the prices of the goods and services purchased by the typical family. B) the cost of a market basket of goods and services typically consumed in a base year. C) the cost of a market basket of goods and services typically consumed in the current year. D) an average of the prices of new final goods and services produced in the economy over a period of time.
The method of constructing a measure of technological progress relies on which of the following assumptions?
A) each factor of production is paid its marginal product B) population growth does not change C) population growth is zero D) the saving rate does note change