Solved

The Quantity of Real GDP Supplied Decreases If the Price

Question 304

Multiple Choice

The quantity of real GDP supplied decreases if the price level ________ because it ________ profits.


A) rises;increases
B) rises;decreases
C) falls;increases
D) falls;decreases
E) None of the above answers is correct because the AS curve is vertical so that the quantity of real GDP supplied does not change when the price level changes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q299: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1457/.jpg" alt=" -The change reflected

Q300: A tax increase<br>A)decreases aggregate demand and the

Q301: The global economy enters a recession,thereby decreasing

Q302: At a price level of 100,John has

Q303: A rise in the price level brings

Q305: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1457/.jpg" alt=" The figure above

Q306: By itself,an increase in the price of

Q307: The main sources of cost-push inflation are

Q308: In the short run,a rise in the

Q309: When the price level falls,<br>A)the AS curve