If Both the Price Level and Nominal Incomes Change by the Same

question 20

Multiple Choice

If both the price level and nominal incomes change by the same percentage:

• A) real GDP will remain constant.
• B) the aggregate supply curve will be upward-sloping.
• C) profit margins will change in real terms.
• D) the long-run aggregate supply curve will be horizontal.

---

Definitions:

Convene Congress

To convene Congress means to bring together the members of the United States Congress, which includes both the Senate and the House of Representatives, for a legislative session.

Ratify Treaties

The formal approval process, usually by a country's legislature, required to validate and make internationally agreed upon treaties effective.

Presidential Appointments

Positions within the federal government, including cabinet secretaries and federal judges, that are appointed by the President of the United States, often with the advice and consent of the Senate.

Citizens' Rights

The legal entitlements and protections granted to individuals by a country's government, which can include civil, political, and social rights.