Author Question: Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise ... (Read 494 times)

CORALGRILL2014 · **on:** Jun 30, 2018

Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise in the equilibrium price level. This implies that the aggregate supply curve for this economy is vertical.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Government should do all it can to slow the process of global warming. Is this a positive or normative statement? Explain your answer.

amanda_14 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

False

Answer to Question 2

This is a normative statement. The key is the inclusion of the word should in the statement. It is a value judgment.