According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve intersects:
a. the vertical portion of the aggregate supply curve.
b. the upward sloping portion of the aggregate supply curve.
c. the horizontal portion of the aggregate supply curve.
d. either the upward sloping or the vertical portions of the aggregate supply curve.
e. either the horizontal or vertical portions of the aggregate supply curve.
c
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After 1960, all of the following declined except
a. the number of U.S. farms. b. the portion of U.S. labor force employed by the agricultural sector. c. the total amount of U.S. land devoted to farming. d. the average acreage per U.S. farm.
Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
a. price increases and quantity increases b. price decreases and quantity increases c. price increases and quantity increases d. price decreases and quantity decreases e. no change in price and quantity