A study of the U.S. price level and real GDP from 1972 to 2007 reveals a clear upward march toward higher prices and greater output. What explains this?
a. Both the aggregate demand curve and the aggregate supply curve have shifted to the left year after year.
b. Both the aggregate demand curve and the aggregate supply curve have shifted to the right year after year.
c. The aggregate supply curve has shifted to the right while the aggregate demand curve has shifted to the left.
d. The aggregate supply curve has shifted to the left while the aggregate demand curve has shifted to the right.
b
You might also like to view...
How are total and marginal utility related?
What will be an ideal response?
A good is said to be excludable if
a. those who do not pay for it can be prevented from consuming it b. those who do not produce the good can be prevented from consuming it c. it is not traded in a public market d. there is no rivalry in consuming it e. its use can be continued indefinitely