Problem Set 6

Problem Set 6 - John(J.C Stevens EC205L Section 216 PROBLEM Set#6 This problem set is due at the beginning of class on You may work with one other

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John (J.C.) Stevens EC205L- Section 216 PROBLEM Set #6 This problem set is due at the beginning of class on 4/21/05. You may work with one other person. You should work only with that partner—that means two groups should not get together and work as a team of four. Please answer all questions to the best of your ability. Circle the multiple-choice answer of your choice, and then explain why your answer is correct, or give an example that proves your answer. It is possible to earn partial points, so do the best you can. NO CREDIT WILL BE GIVEN FOR ONLY SELECTING A MULTIPLE CHOICE ANSWER. 1. If aggregate demand and supply are both increasing, a) the price level may not change. b) the price level will definitely be decreasing. c) real GDP will definitely be decreasing. d) the price level will definitely be increasing. e) real GDP will not change. D is the correct answer, because if aggregate demand and supply are both increasing then the price level must be increasing as well, but since aggregate supply
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This homework help was uploaded on 04/02/2008 for the course EC 205 taught by Professor Hymen during the Spring '08 term at N.C. State.

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Problem Set 6 - John(J.C Stevens EC205L Section 216 PROBLEM Set#6 This problem set is due at the beginning of class on You may work with one other

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