Author Question: When the price level rises and the money wage rate does not change, A) the quantity of potential ... (Read 146 times)

jho37 · **on:** Jun 30, 2018

When the price level rises and the money wage rate does not change,

A) the quantity of potential GDP increases because the quantity of real GDP supplied increases.
B) the quantity of real GDP supplied increases as more businesses start up and potential GDP does not change.
C) existing businesses do not change their level of output.
D) profits fall and more businesses fail.
E) the quantity of real GDP supplied decreases as more businesses fail and potential GDP does not change.

Question 2

In 2012, the United States had

A) a current account deficit because imports were greater than exports.
B) a current account deficit and a capital and financial account deficit.
C) a capital and financial account deficit because exports were greater than imports.
D) a current account surplus because imports were greater than exports.
E) no change in U.S. official reserves.