Multiple Choice
When we say that potential GDP is exogenous with respect to the price level, we refer to
A) the fact that changes in real money balances cause output to rise
B) the fact that the long-run AS-curve shifts to the right over time
C) the short-run AS-curve
D) the medium-run AS-curve
E) the Keynesian AS-curve
Correct Answer:
Verified
Correct Answer:
Verified
Q40: In the medium run, if government purchases
Q41: The level of GDP that corresponds to
Q42: In an AD-AS diagram with an upward-sloping
Q43: A decrease in nominal money supply will
Q44: If output is at its full-employment level,
Q46: In which of the following cases is
Q47: The AD-AS diagram used in this chapter<br>A)is
Q48: In the Keynesian aggregate supply curve case,<br>A)firms
Q49: Assume you mistakenly buried a $100 bill
Q50: Frictional unemployment is defined as<br>A)all unemployment above