If both the price level and nominal incomes change by the same percentage:
A. real GDP will remain constant.
B. the aggregate supply curve will be upward-sloping.
C. profit margins will change in real terms.
D. the long-run aggregate supply curve will be horizontal.
Answer: A
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Which of the following is true? a. Actual reserves equal required reserves minus excess reserves
b. The predominant liability of virtually all banks is loans. c. The lower the required reserve ratio, the larger the money multiplier. d. If some banks choose not to lend all of their excess reserves, the total amount of money created by an initial cash deposit will be larger.
The graph shown demonstrates a tax on buyers. Before the tax was imposed, the sellers produced ________ units and received __________ for each one sold.
A. 6; $22
B. 6; $34
C. 9; $18
D. 9; $30