Multiple Choice
The upward slope of the short-run aggregate supply curve is based on the assumption that
A) wages and other resource prices do not respond to price level changes.
B) wages and other resource prices do respond to price level changes.
C) prices of outputs do not respond to price level changes.
D) prices of inputs are flexible, while prices of outputs are fixed.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: A decrease in personal and business taxes
Q3: Given a fixed upsloping AS curve, a
Q6: Menu costs<br>A)increase during recession.<br>B)decrease during recession.<br>C)are the
Q7: The foreign purchases effect<br>A)shifts the aggregate demand
Q8: Aggregate demand decreases and real output falls
Q10: Cost-push inflation is depicted as a rightward
Q11: In which of the following sets of
Q25: A negative GDP gap can be caused
Q85: Which of the following effects best explains
Q141: An increase in investment and government spending