The short-run aggregate supply curve
A) is vertical.
B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant.
C) illustrates the level of potential real GDP.
D) shifts whenever the price level changes.
B
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Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s).According to this Application, the recent result of the harmattan was to ________ the equilibrium price and ________ the equilibrium quantity of cocoa.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
If protective import-restricting quotas are imposed by a country, in the majority of cases that nation's consumers end up
A. consuming more of the good than they otherwise would. B. paying a lower price for the good than they otherwise would. C. having more consumption choices than they otherwise would. D. consuming less of the good than they otherwise would.