You can generally distinguish an aggregate supply-caused recession from an aggregate demand-caused recession because
a. real GDP will rise in an aggregate supply recession.
b. the price level will fall in an aggregate supply recession.
c. the price level will fall in an aggregate demand recession.
d. real GDP will rise in an aggregate demand recession.
c
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If you are willing to sell your lawn mower business for $355,000 and someone offers you $420,000 for it, this transaction will generate:
a. There is no surplus created b. $65,000 worth of seller surplus and unknown amount of buyer surplus c. $30,000 worth of buyer surplus and $35,000 of seller surplus d. $65,000 worth of buyer surplus and unknown amount of seller surplus
If demand is price inelastic, then when price rises, total revenue
a. will fall. b. will rise. c. will remain unchanged. d. may rise, fall, or remain unchanged. More information is need to determine the change in total revenue with certainty.