The aggregate supply curve is drawn with
A. the price level on the vertical axis and nominal GDP on the horizontal.
B. nominal GDP on the vertical axis and real GDP on the horizontal.
C. the price level on the vertical axis and real GDP on the horizontal.
D. real GDP on the horizontal axis and the rate of inflation on the vertical.
Answer: C
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Refer to Scenario 12.1. What is the probability of neither Simon nor Paula trying to rescue the man?
A) 9% B) 21% C) 30% D) 49%
A simultaneous increase in demand and decrease in supply would lead to:
a. An increase in the equilibrium price and a decrease in the quantity sold b. An increase in both the equilibrium price and the quantity sold. c. A decrease in both the equilibrium price and the quantity sold. d. An uncertain effect on the equilibrium quantity but an increase in the equilibrium price.