Assume equilibrium real GDP per year is equal to full-employment real GDP. If aggregate demand falls, then
A) the price level will increase in the short run and decrease in the long run.
B) long-run aggregate supply will eventually decrease too.
C) there will be an expansionary ga
D
Economics
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If the average productivity of labor equals the marginal productivity of labor, then
A) the average productivity of labor is at a maximum. B) the marginal productivity of labor is at a maximum. C) Both A and B above. D) Neither A nor B above.
Economics
If velocity and the money supply are __________________, then when one component of spending rises another component of spending ________________
A) constant; must fall B) constant; must rise C) rising; may not necessarily fall D) rising; must rise
Economics