Author Question: The relationship between the price level and the real Gross Domestic Product (GDP) without full ... (Read 67 times)

Jkov05 · **on:** Jun 30, 2018

The relationship between the price level and the real Gross Domestic Product (GDP) without full adjustment or full information is represented by

A) the distance between the long-run aggregate supply curve and the short-run aggregate supply curve.
B) the short-run aggregate supply curve.
C) the long-run aggregate supply curve.
D) the aggregate demand curve.

Question 2

At tax rates higher than the tax rate that maximizes tax revenues along a Laffer curve

A) an increase in tax rates increases tax revenues.
B) any variation in tax rates has no effect on tax revenues.
C) a reduction in tax rates increases tax revenues.
D) a reduction in tax rates reduces tax revenues.