Author Question: The open economy effect and interest rate effect are two of the reasons why A) higher price ... (Read 241 times)

urbanoutfitters · **on:** Jun 30, 2018

The open economy effect and interest rate effect are two of the reasons why

A) higher price levels increase long-run aggregate supply.
B) growth of the labor force does not contribute to economic growth in wealthy countries.
C) capital formation does not contribute to economic growth in poor countries.
D) the aggregate demand curve slopes downward.

Question 2

Refer to the table above. If at a price of 3 per loaf, the market supply of bread is 45 loaves, Seller 3's supply is:

A) 15 units. B) 24 units. C) 18 units. D) 20 units.