Why does an increase in the price level cause a decrease in real GDP demanded?
a. Consumer wealth increases.
b. Net exports will increase.
c. Interest rates decrease and cause higher investment.
d. Net exports will decrease.
d
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In the first graph below, illustrate the cost curves and demand conditions for a monopolistic ally competitive firm making short-run profits. In the second graph, illustrate what those conditions are most likely to be in the long run. Explain the major
differences in the two graphs. What will be an ideal response?
Suppose the capital gains tax is 28 percent and you purchased a house ten years ago for $80,000. If you sold the house today you would get $140,000. Your tax liability would be
A) $39,200. B) $16,800. C) indeterminate without knowing the inflation rate. D) indeterminate without knowing the personal income tax rate.