This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the price level in an economy rises and its output level decreases as it gravitates toward its ... (Read 68 times)

panfilo

  • Hero Member
  • *****
  • Posts: 572
on: Jun 30, 2018
If the price level in an economy rises and its output level decreases as it gravitates toward its potential GDP, then:
 a. a policy to manipulate the aggregate supply is being used.
 b. an active approach to correcting a recessionary gap is being used.
  c. an active approach to correcting an expansionary gap is being used.
  d. a passive approach to correcting a recessionary gap is being used.
  e. a passive approach to correcting an expansionary gap is being used.

Question 2

When self-correction works to eliminate an expansionary gap, _____.
 a. both money wages and real wages increase
 b. money wages increase while real wages decrease
  c. both money wages and real wages decrease
 d. money wages decrease while real wages increase
  e. money wages remain unchanged


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joneynes

  • Sr. Member
  • ****
  • Posts: 376
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

b


panfilo

  • Member
  • Posts: 572
Reply 2 on: Jun 30, 2018
Wow, this really help

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Epidemiologists look for the causes of disease, such as toxic waste and industrial pollution, at the Epidemiologists look for the causes of disease, such as toxic waste and industrial pollution, at the
How much the temperature will rise depends on many factors that affect the level of GHG emission How much the temperature will rise depends on many factors that affect the level of GHG emission
Rising sea level threatens coastal communities around the world Rising sea level threatens coastal communities around the world
The developed countries must reduce the level of greenhouse gas emissions The developed countries must reduce the level of greenhouse gas emissions
Share of Hours Worked by Education Level, 1940–2008 Share of Hours Worked by Education Level, 1940–2008
The price of rice in a small country is currently $6 per pound. In order to help low-income ... The price of rice in a small country is currently $6 per pound. In order to help low-income ...
Video: Introduction to Autism

For a complete list of videos, visit our video library