If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and lower level of output.
C. higher price level and higher level of output.
D. lower price level and higher level of output.
Answer: A
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When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods
A) must increase. B) must decrease. C) must remain the same. D) must change but they might increase or decrease. E) might increase if the nation can produce more efficiently.
If currencies around the world are based on the gold standard, and Japan raises the amount of gold for which the yen will trade, then holding all else constant,
A) the value of U.S. exports to Japan in terms of the yen will increase. B) the value of the yen relative to the dollar will stay constant. C) the yen will appreciate against the dollar. D) the yen will depreciate against the dollar.
Suppose a manager of a company is told by his staff that marginal productivity has risen above the average productivity over the last six months of operation
What can this manager conclude is happening to the overall average productivity of the company? Explain.
The cumulative power of productivity growth: a. emphasizes the importance of short-term growth. b. emphasizes the importance of long-term growth. c. emphasizes the importance of capital–labor ratio. d. increases poverty in an economy
e. leads to capital deepening