Examlex

Solved

Suppose the Following: (1)the Wage Rate Falls,(2)business Taxes Decline,(3)any Change

question 73

Multiple Choice

Suppose the following: (1) the wage rate falls,(2) business taxes decline,(3) any change in SRAS is greater than any change in AD.Based on this information,in the short run Real GDP will __________ and the price level will __________.


Definitions:

Explicit Costs

Costs that involve direct monetary payment by a business to purchase or maintain resources.

Usury Law

Legal regulations that set maximum interest rates that can be charged on loans to protect consumers against excessively high rates.

Equilibrium Interest Rate

The interest rate at which the demand for money in an economy equals the supply of money, maintaining a balance without excess surplus or shortage.

Market Equilibrium

The state in which market supply equals market demand, leading to price stability.

Related Questions