Distinguish between a movement along the aggregate supply curve and a shift of the entire aggregate supply curve. What factors cause each to occur?
What will be an ideal response?
The aggregate supply curve is analogous to an individual firm’s supply curve in microeconomic analysis. A change in the economy’s price level will cause a movement along the aggregate supply curve. A change in one of the determinants of aggregate supply will cause a shift of the aggregate supply curve. Among the most important determinants are the level of money wages, other resource prices, and the level of technology and productivity.
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Suppose the airplane market is an oligopoly. According to the figure above, the price can range as high as ________ and as low as ________
A) $13 million per plane; $1 million per plane B) $30 million per plane; $13 million per plane C) $13 million per plane; $13 million per plane D) $1 million per plane; $1 million per plane E) None of the above answers is correct.
According to the active policy approach, the elimination of a recessionary policy _____
a. can only be achieved by decreasing wages b. requires a public policy of wage and price controls c. should be accomplished by stimulating aggregate demand d. will increase unemployment e. will cause a recession
Cyclical unemployment originates with an imbalance between injections and leakages, not the absolute size of injections or leakages.
Answer the following statement true (T) or false (F)
All of the following except ___________ are bases for judging job analysis.
A. currency B. acceptability C. cost D. usefulness