When potential GDP increases, _______ A. Aggregate demand increases B. Aggregate supply increases C. Both aggregate demand
Question:
When potential GDP increases, _______
A. Aggregate demand increases
B. Aggregate supply increases
C. Both aggregate demand and aggregate supply increase
D. The price level rises
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
B As Figure 132 in ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing more than potential GDP increases? What is the result of aggregate demand increasing less...
-
1. Suppose the supply of money increases, causing output to exceed full employment. Prices will ______ and real GDP will ______ in the short run, and prices will ______ and real GDP will in the long...
-
1. An increase in the price level will GDP and thereby move the economy the aggregate demand curve. 2. At any price level, the income-expenditure model determines the level of equilibrium output and...
-
Read the following statements. In response, state True, False or Uncertain and explain why: (a) Since resources have substitutes, nature imposes particular scarcities, not an inescapable general...
-
Describe the contingency leadership theory variables.
-
Consider a pure exchange economy with two consumers and two goods. At some given Pareto efficient allocation it is known that both consumers are consuming both goods and that consumer A has a...
-
Attracted by the possible returns from a portfolio of movies, hedge funds have invested in the movie industry by financially backing individual films and/or studios. The hedge fund Star Ventures is...
-
A 20,000-liter storage tank was taken out of service to repair and reattach a feed line damaged in a collision with a tanker. The tank was drained and then opened several days later for a welder to...
-
Why are there such discrepancies in the view of performance by the manager and the employees? Is this a good place for 360 feedback? How much should the manager be influenced by employee opinions?...
-
Reliable Electric is considering a proposal to manufacture a new type of industrial electric motor which would replace most of its existing product line. A research breakthrough has given Reliable a...
-
The quantity of real GDP demanded increases if _______. A. The buying power of money increases B. The money wage rate rises C. The price level falls D. The nominal interest rate falls
-
Aggregate supply increases when ________. A. The price level rises B. The money wage rate falls C. Consumption increases D. The money price of oil increases
-
(a) Use the derivative to find all critical points. (b) Use a graph to classify each critical point as a local minimum, a local maximum, or neither. f(x) = x 4 4x 3
-
Explain the benefits of performance appraisal systems within an organization by recommending reappraisal activities that ensure there are performance appraisal processes that are beneficial to the...
-
Write how there might be a controversy overuse of performance appraisals . Identify some the difficulties or potential problems with performance appraisal systems. Then identify reasons they are...
-
Carl placed $3,000 in a savings account that compounds interest annually at a rate of 1.5%. How much will he have in the account after 5 years? Round your answer to the nearest dollar. Do NOT round...
-
Beyond the Leadership Council / Team , whose responsibility is it to provide resources and remove roadblocks that can hinder teams, particularly for projects that cross functional boundaries? A...
-
If a company adds a new product line to its existing portfolio, it has increased its O A. product mix depth B. product mix consistency C. product support services OD. product mix width O E. product...
-
Friends in your discussion group say that when you touch a piece of ice, cold flows from the ice to your hand, which is why your hand is cooled. What is your more enlightened response?
-
Determine the center and radius of each circle. Sketch each circle. 4x 2 + 4y 2 9 = 16y
-
At a market price of $83 a batch, what quantity does Lins produce and what is the firms economic profit in the short run? Do firms enter or exit the market and what is Lins economic profit in the...
-
At a market price of $83 a batch, what quantity does Lins produce and what is the firms economic profit in the short run? Do firms enter or exit the market and what is Lins economic profit in the...
-
At what market prices would the firm shut down temporarily? What is the market price of a toy in long-run equilibrium? How many firms will be in the toy market in the long run? Explain your answer....
-
Suppose the correlation between the stock euro returns of Siemens and the USD/EUR exchange rate is 0.2. The standard deviation of the USD/EUR is 10% and the standard deviation of Siemens's stock euro...
-
list and describe the three key client-related factors that the advisor is required to consider when developing a "suitable" investment portfolio for their client. Please cite resources used
-
Year 1 2 3 Amount ($) 2000 3000 4000 An investment made today will pays you the above cash flows at the end of each year. If your required rate of return is 5% annual interest, how much will you pay...
Study smarter with the SolutionInn App