In the short run, real GDP can increase beyond a level consistent with the long-run growth path if
A) existing capital and labor are used more intensely.
B) the price level decreases accordingly.
C) we measure in nominal terms instead of real terms.
D) there is an increase in marginal tax rates.
A
Economics
You might also like to view...
Suppose the economy is experiencing a recessionary gap. In the long run, if aggregate demand does not change, the following events happen: the money wage rate ________, unemployment ________, and the price level ________
A) falls; rises; falls B) falls; falls; falls C) rises; rises; rises D) rises; falls; rises
Economics
According to a 1977 amendment to the Federal Reserve Act of 1913, what are the goals the Fed should promote?
Economics