The short-run aggregate supply curve is upsloping because higher price levels:
A. lower interest rates and encourage firms to invest and produce more.
B. create incentives to expand output when resource prices are unresponsive to price-level
changes.
C. encourage importation of foreign goods.
D. create an expectation among producers of still higher price levels.
B. create incentives to expand output when resource prices are unresponsive to price-level
changes
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U.S. real GDP
A) measures the change in the price level over time. B) precisely measures the improving standard of living in the United States. C) excludes the value of underground production and leisure time. D) includes the value of underground production but excludes the value of leisure time. E) is not as accurate as nominal GDP when measuring standard of living changes over time.
A market in which the Herfindahl-Hirschman Index is 1,000 is regarded by the Federal Trade Commission as
A) moderately concentrated. B) concentrated. C) competitive. D) monopolistic.