If both real GDP and nominal GDP of a country increased at the same rate in a particular year, which of the following is most likely to have taken place?
a. Output increased and the price level increased
b. Output increased and the price level decreased
c. Output decreased and the price level increased
d. Output decreased and the price level decreased
e. Output increased and the price level remained constant
e
You might also like to view...
If the Fed buys government securities, other things the same, the exchange rate ________ and U.S. exports ________
A) falls; decrease B) rises; increase C) falls; increase D) rises; decrease E) falls; do not change because they are autonomous expenditure
The idea behind the Phillips curve is that ________
A) tight labor markets lead to inflationary pressures B) when the unemployment rate is low, wages will increase C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above