Author Question: The degree of responsiveness of aggregate output to a price change declines as the: a. rate of ... (Read 48 times)

tuffie · **on:** Jun 30, 2018

The degree of responsiveness of aggregate output to a price change declines as the:
a. rate of savings increases.
b. economy approaches its maximum potential output.
c. level of real GDP declines over time.
d. the price elasticity of imports declines.
e. the excess capacity of all the firms in the economy increases over time.

Question 2

Which of the following statements can explain why an association between Event A and Event B may not imply causality from A to B?
a. The observed association may be coincidental.
b. There may be a third variable that is responsible for causing both events.
c. Causality may run from Event B to Event A instead of in the opposite direction.
d. All of the above can explain why an association between Event A and Event B may not imply causality from A to B.