The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
A. not alter the economy's full-employment real GDP.
B. increase the economy's full-employment real GDP.
C. reduce the quantity of goods and services purchasers will demand.
D. improve the overall efficiency of resource use.
Answer: A
Economics
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An improvement in technology will shift the production possibilities curve
A) to the left. B) along the curve. C) inward. D) to the right.
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Consider a good to which a per-unit tax applies. The greater the price elasticities of demand and supply for the good, the
a. smaller the deadweight loss from the tax. b. greater the deadweight loss from the tax. c. more efficient is the tax. d. more equitable is the distribution of the tax burden between buyers and sellers.
Economics