If potential GDP increases,
A) aggregate supply increases.
B) the money wage rate must have fallen.
C) the quantity of aggregate supply decreases.
D) the price level rises.
E) aggregate supply does not change.
A
Economics
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The study of economics
A) focuses mainly on individual consumers. B) arises from the fact that our wants exceed available resources. C) recognizes that scarcity does not affect rich nations. D) deals mainly with microeconomics.
Economics
Clifford lives by the motto "Eat drink and be merry today, for tomorrow doesn't matter." If today's consumption is represented by "x" and tomorrow's consumption is represented by "y", then which of the following best represents Clifford's utility function?
A) U = x - y B) U = x/y C) U = x D) U = y
Economics