Refer to the above figure. An increase in aggregate demand beyond real Gross Domestic Product (GDP) level Y1 would result in
A) a lower price level and an increases in real GDP.
B) higher real GDP but not a higher price level.
C) a lower price level but no change in real GDP.
D) a higher price level but no change in real GDP.
D
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Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?
A) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. B) Because of the low birth rate in China, the labor force will soon decline. C) The United States invests more in research and development than does China. D) The Chinese migration of rural workers to more productive urban jobs.
What do you think about dollarization?
What will be an ideal response?