Exhibit 10-6 Aggregate Supply Curve in Exhibit 10-6, When

question 67

Multiple Choice

Exhibit 10-6 Aggregate supply curve In Exhibit 10-6, when the economy moves from a GDP of $1,000 billion to a GDP of $1,100 billion,

• A)higher wages will lower the cost of producing goods.
• B)real GDP and employment both increase, but only under conditions of constant prices.
• C)real GDP increases and employment decreases, but only under conditions of price level increases.
• D)real GDP and employment both increase, but only under conditions of price level increases.
• E)the economy has reached full employment.

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Definitions:

Quota

A limit set by a government on the amount of a particular product that can be imported or exported within a certain period.

Specified Amount

A specified amount refers to a particular or agreed sum of money or quantity of a resource or asset.

Tariff

A tariff is a tax imposed by a government on goods and services imported from other countries, used to restrict trade, as they increase the cost of imported goods and services, making them less competitive than domestic goods.

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use.