Author Question: As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the right. ... (Read 21 times)

abc · **on:** Jun 30, 2018

As the level of real GDP increases, the short-run aggregate supply curve:
a. shifts to the right.
b. shifts to the left.
c. becomes flatter.
d. becomes steeper.
e. becomes horizontal to the real GDP axis.

Question 2

A leading game-console manufacturer slashes the price of its flagship product by ten percent. Holding other things such as income and preferences constant, which of the following is the most likely group behavior prediction?
a. Price reduction will have no impact on purchase patterns.
b. Price reduction will be associated with a reduction in quality; thereby reducing sales.
c. More game consoles will be sold at lower prices.
d. Group behavior cannot be predicted.