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These answers are not the correct ones, I dont know if they are correct; please

ID: 1091878 • Letter: T

Question

These answers are not the correct ones, I dont know if they are correct; please give me the right answers, please see my other questions, thank you

The wealth effect suggests: that price level changes do not affect real wealth. a negative relationship between the price level and consumption spending. a positive relationship between the price level and consumption spending, that when the price level increases, the real value of money increases also. One way to reduce financial risk is to: diversify in a number of banks. buy bonds only in a major company. diversify in a variety of assets, both financial and physical. buy stock only in a major company. The long-run aggregate supply curve is vertical because in the long run: the price of labor is flexible, while the price of physical capital is fixed. all factors of production increase. all prices are flexible. technological progress outpaces raises in nominal wages. All of the following will increase the economy's potential output EXCEPT: a decrease in the aggregate price level. an increase in human capital. technological innovation. an increase in physical capital.

Explanation / Answer

25. B

26. C

27. C

28. A

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