The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ________ when ________
A) the price level; real GDP equals potential GDP
B) real GDP demanded; the wage rate is constant
C) the price level; real GDP equals nominal GDP
D) real GDP demanded; the price level does not change
A
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Refer to the above figure. The economy initially is at point A. The Fed unexpectedly increases the money supply. Which of the following statements are TRUE?
A) In the short run, the economy will move from point A to point C. In the long run, the economy will move to point B. B) In the short run, the economy will move from point A to point C. In the long run, the economy will move back to point A. C) In the short run, the economy will move from point A to point B. In the long run, the economy will stay at point B. D) In the short run, the economy will move from point A to point B. In the long run, the economy will move back to point A.
The problem of _____ can arise when a seller cannot obtain reliable information from buyers
a. moral hazard b. adverse selection c. lemons problem d. incomplete information