Starting from short-run equilibrium, the following occurs: the money supply increases and labor productivity increases. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises.
B) Real GDP rises and the price level necessarily rises.
C) Real GDP rises and the effect on the price level cannot be determined.
D) Real GDP falls and the effect on the price level cannot be determined.
E) none of the above
C
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According to the twin-deficit problem
A. Greece's government budget deficit weakened aggregate demand B. Greece's government budget deficit should have eliminated its current account deficit C. Greece's government budget deficit contributed to its current account deficit D. none of the above
Economists assume that most people a. act purposefully
b. make decision with some expected outcome in mind. c. make choices that are not random and chaotic. d. all of the above.