An increase in government purchases will NOT increase the level of output if
A: the AS-curve is totally price elastic
B: the price level is fixed
C: wages and prices are completely rigid
D: wages and prices are completely flexible
E: real money balances are not affected
A: the AS-curve is totally price elastic
B: the price level is fixed
C: wages and prices are completely rigid
D: wages and prices are completely flexible
E: real money balances are not affected
举一反三
- In the short run, the impact of an increase in the money supply on the price level and real output will be: Price level Real output（） ①A. Increase Increase ②B. Increase No change ③C. No change Increase A: ① B: ② C: ③
- The AS-curve is horizontal or very flat if A: additional resources (especially labor) can be hired to produce additional output with little or no increase in existing prices B: wages fall rapidly with an increase in unemployment, reducing spending and income to restore equilibrium C: firms lower wages less than prices to avoid a loss in profit during a recession D: the nominal wage adjustment occurs fairly rapidly E: nominal wages and prices always change proportionally, leaving the real wage rate unchanged
- The slope of the AS-curve becomes steeper ( ) A: as wages and prices become more flexible B: as wages become more rigid C: as the economy moves further away from full employment D: as the government implements expansionary fiscal policy
- The slope of the AS-curve becomes steeper A: as nominal wages become more flexible B: as nominal wages become more rigid C: as the actual level of output moves further away from potential output D: as the economy approaches full employment E: both A) and D)
- Which of the following would increase the price level? A: an increase in taxes. B: an increase in the money supply. C: an increase in the expected price level. D: a decrease in the natural rate of unemployment.