The short-run aggregate supply curve would shift and the long-run aggregate supply curve would remain fixed if
A) there was a temporary shock that influenced the supply side.
B) there was a permanent increase in aggregate demand along with a permanent decrease in aggregate supply.
C) there was a permanent increase in aggregate demand.
D) there was a temporary shock to aggregate demand.
A
You might also like to view...
Is it possible for a super-entrepreneur to solve all of the coordination failure problems within a developing economy? Discuss
What will be an ideal response?
According to the quantity theory of money, if the quantity of goods and services doubles within the economy while velocity is constant and the money supply is cut in half, then the price level will be
a. unaffected b. four times higher c. times higher d. one-half its previous level e. one-fourth its previous level
Exhibit 4-10 Supply and demand data for apricots Bushels demandedper month Price perbushel Bushels suppliedper month 50 $5 80 55 4 75 60 3 70 65 2 65 70 1 55 Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots. B. Buyers would not want to purchase all of the apricots that are supplied. C. There would be a surplus of apricots. D. Farmers would reduce the number of acres allocated to the growing of apricots.
Consumer surplus from a given purchase is the difference between what one was willing to pay for that purchase and what was actually paid
Indicate whether the statement is true or false