A(n) ________ in inflationary expectations that causes firms to increase their prices shifts the aggregate supply curve to the ________.
A. increase; right
B. increase; left
C. decrease; right
D. decrease; left
Answer: B
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The deadweight loss due to a ________ is always smaller than the deadweight loss due to a ________
A) tax on each unit sold; per unit tax on each unit bought B) per unit tax on each unit sold; per unit tax on each unit bought C) tax on each unit sold; lump-sum tax D) lump-sum tax; tax on each unit bought
A falling price level in conjunction with rising output would be evidence in favor of which model?
a. Keynesian model. b. monetarist model. c. real business cycle model. d. a and b. e. none of the above.
The Robinson-Patman Act of 1936 amended the: a. Sherman Act
b. Clayton Act. c. Federal Trade Commission Act. d. Wagner Act.
The value (purchasing power) of each unit of money
a. is largely independent of the money supply. b. tends to increase as the money supply expands. c. increases as prices rise. d. tends to decline as the money supply expands in relation to the availability of goods and services.