Economic growth will be associated with a constant price level when
A) the increase in aggregate demand is accompanied by a reduction in short-run aggregate supply.
B) the increase in aggregate demand is less than the increase in long-run aggregate supply.
C) the increase in aggregate demand exactly equals the increase in long-run aggregate supply.
D) the increase in aggregate demand is more than the increase in long-run aggregate supply.
C
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In a Keynesian model, what are the short-run effects on output, the real interest rate, and the real exchange rate, for both the domestic economy and a foreign economy, of a decline in investment?
What will be an ideal response?
When a binding price ceiling is imposed on a market to benefit buyers,
a. no buyers actually benefit. b. some buyers benefit, but no buyers are harmed. c. some buyers benefit, and some buyers are harmed. d. all buyers benefit.