Author Question: The long-run aggregate supply of an economy at the potential level of real GDP is graphically ... (Read 53 times)

ghost! · **on:** Jun 30, 2018

The long-run aggregate supply of an economy at the potential level of real GDP is graphically represented by:
a. a horizontal line.
b. an upward-sloping curve.
c. a downward-sloping curve.
d. a vertical line.
e. a backward bending curve.

Question 2

Many people have heard that the stock market rises when a team from the National Football Conference (NFC) wins the Super Bowl, and falls when a team from the American Football Conference (AFC) is victorious. If you conclude that there is a causal relationship between the outcome of the Super Bowl and stock prices, you probably are:
a. confusing correlation with causation.
b. committing the fallacy of composition.
c. confusing the direction of causality, since everyone knows that stock prices determine which team wins the Super Bowl.
d. none of the above