Other things remaining the same, an increase in the price level
A) decreases the quantity of real GDP supplied.
B) decreases aggregate supply.
C) increases aggregate supply.
D) increases the quantity of real GDP supplied.
E) neither changes aggregate supply nor changes the quantity of real GDP supplied.
D
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Activities designed to convert resources into goods and services is known as
A) supply. B) consumption. C) production. D) scarcity.
To avoid the problem of double marginalization:
A. firms should engage in commodity bundling, unless it is possible to engage in either first-or second-degree price discrimination. B. transfer prices must be set that maximize the overall value of the firm rather than the profits of the upstream division. C. firms should put more emphasis on vertical integration. D. firms should engage in two-part pricing.