Answer the following questions true (T) or false (F)
1. At a long-run macroeconomic equilibrium, real GDP is always equal to potential GDP.
2. Stagflation occurs when short-run aggregate supply decreases.
3. An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.
1. TRUE
2. TRUE
3. FALSE
Economics
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Which of the following is a sustained decrease in the price level?
a. hyperinflation b. disinflation c. deflation d. none of the above are considered a sustained decrease in the price level.
Economics
The market labor-supply curve is:
A. downward sloping. B. perfectly inelastic. C. perfectly elastic. D. upward sloping.
Economics