If the AS Curve Is Vertical and There Is a Decrease

question 33

Multiple Choice

If the AS curve is vertical and there is a decrease in aggregate demand,the result is

• A)a decrease in the price level with no change in real GDP.
• B)an equal decrease in national income.
• C)an increase in the price level.
• D)an increase in national income.
• E)no change in either price level or real GDP.

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Definitions:

Excessive Bids

Bidding amounts that significantly exceed the estimated value of an item in auctions or tender processes.

Dominant Strategies

In game theory, strategies that are best for a player regardless of what the other players choose.

Credible Threat

A statement or action that is believable and carries the weight of possible enforcement, often used in negotiations or strategic situations.

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.