The quantity of real GDP supplied ________ when the price level increases because ________
A) increases; the real wage rate falls
B) decreases; investment increases
C) increases; the quantity of money increases
D) increases; aggregate demand increases
E) decreases; the real wage rate rises
A
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The Herfindahl-Hirschman Index for a monopoly is
A) 1. B) 100. C) 10,000. D) undefined.
The difference between traditional theories of the business cycle and real business cycle theory is the
a. emphasis they place on the government's role in the economy b. ideas they hold about the importance of investment in influencing the economy's growth path c. ideas they hold about the importance of technology in influencing the economy's growth path d. emphasis they place on the timing of the cycle e. way they define GDP and full employment, which means they describe the same events quite differently