If the aggregate supply curve has its normal shape, deficit spending will increase
A. both GDP and the price level at about the same rate.
B. the price level before it increases real GDP.
C. the price level but decrease real GDP.
D. real GDP before it increases the price level.
Answer: D
Economics
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The relationship between the inputs employed by a firm and the maximum output it can produce with those inputs is called the firm's
A) total factor productivity. B) marginal production level. C) technological ratio. D) production function.
Economics
Wage reduction policies are less common than layoffs because
A) workers never prefer wage reduction policies. B) workers always trust the firm to tell the truth. C) of asymmetric information. D) of adverse selection problems.
Economics