A GDP price chain price index number of 120.0 for a given year indicates that prices in that year are 20 percent higher than prices in the base year.
a. True
b. False
Indicate whether the statement is true or false
Question 2
In the aggregate demand and aggregate supply model,
a. the factors that cause the demand curves in both models to slope downward are the same.
b. the factors that cause the supply curves in both models to slope upward are the same.
c. the upward-sloping aggregate demand curve intersects the downward-sloping aggregate supply curve to determine the economy's price level and GDP.
d. the upward-sloping aggregate supply curve intersects the downward-sloping aggregate demand curve to determine the economy's price level and GDP.
e. the price level never changes even with shifts in aggregate demand and aggregate supply.
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