Which of the following would shift the AS curve downward?
a. A decrease in the price level
b. A decrease in world oil prices.
c. An increase in world oil prices.
d. A natural disaster that raises unit costs for all firms.
e. A loss of technological capability.
B
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How does a government-regulated price floor set above the equilibrium price affect the quantity of the good demanded and supplied in the market?
What will be an ideal response?
Which of the following statements best describes a normal good?
A) A normal good is a good that is rationed by the government. B) A normal good is a good that is readily available in the market. C) A normal good is a good whose supply increases as its price decreases. D) A normal good is a good whose demand increases with an increase in consumers' income.
Automatic fiscal policy ________
A. requires an action of the government B. is weak unless the government cuts its outlays to reduce the deficit C. operates as the economy moves along its business cycle D. reduces the deficit as the economy goes into recession
Let the production function be q=ALaKb. The function exhibits decreasing returns to scale if
A) a + b = 1. B) a+ b > 1. C) a + b < 1. D) Cannot be determined with the information given.