In the long-run, an increase in aggregate demand increases the price level, but not real GDP
a. True
b. False
Indicate whether the statement is true or false
True
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The reversal of fortune can be attributed to the fact that:
A) economic institutions in European colonies were inclusive in all nations. B) economic institutions in European colonies were extractive in prosperous nations and inclusive in other nations. C) economic institutions in European colonies were extractive in all nations. D) economic institutions in European colonies were inclusive in prosperous nations and extractive in other nations.
One complication that tends to prolong recessionary gaps is that wages
a. are fixed by unions, which represent nearly all workers in the United States. b. tend to rise rapidly. c. rarely fall. d. tend to move in the opposite direction from prices.