When prices rise:

A) money supply tends to rise. B) menu costs tend to fall.
C) consumers' purchasing power falls. D) money demand tends to fall.

C

Economics

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If potential GDP is equal to $600 billion, what does the long-run aggregate supply curve look like?

A) It is a vertical line at a level of GDP above $600 billion. B) It is a vertical line at $600 billion of GDP. C) It is a horizontal line at $600 billion of GDP. D) It is a vertical line at a level of GDP below $600 billion.

Economics

On the 45-degree line diagram, the 45-degree line shows points where

A) real aggregate expenditure equals real GDP. B) real aggregate expenditure equals C + I. C) real income equals real GDP. D) real aggregate output equals the quantity produced.

Economics