In the short run
a. wages are slow to adjust to changes in supply and demand
b. most producers will reduce their production levels when inflation rises
c. business sales revenues rise slower than costs, when inflation occurs
d. all
Ans: a. wages are slow to adjust to changes in supply and demand
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Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)
A) an increase in the price of a rutabaga B) an exceptionally cold summer that killed much of the rutabaga crop C) a fall in the price of fertilizer used to grow rutabagas D) Both answers A and C shift the supply curve of rutabagas rightward. E) Both answers A and B shift the supply curve of rutabagas rightward.
Collusion and cartels are frequently legal in Europe
a. True b. False
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. Suppose the economy is currently at Point B. If investors are ________ in aggregate output, investment moves the economy to I2.
A. pessimistic about future growth B. optimistic about future growth C. pessimistic about past growth D. optimistic about past growth