When the price level falls from 135 to 120,the aggregate level of GDP supplied falls from $140 billion to $125 billion.This ________ relationship represents the ________ relationship between GDP and the price level.
A) negative; short-run
B) positive; short-run
C) negative; long-run
D) positive; long-run
Correct Answer:
Verified
Q119: Figure 13-2 Q120: Studies have shown that Q121: Workers expect inflation to fall from 4% Q122: If potential GDP is equal to $600 Q123: If workers leave a country to seek Q125: Suppose a developing country experiences a reduction Q126: If firms and workers could predict the Q127: On the long-run aggregate supply curve Q128: The _ curve is vertical. Q129: The _ curve has a positive slope
A)firms often cut nominal
A)an increase
A)short-run aggregate supply
B)short-run
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents