From the list? below, match the letter of the outcome each of the following events produces upon the LRAS curve.
A. Shifts to right
B. Shifts to left
C. Movement up along
D. Movement down along
Last year, businesses invested in new capital equipment, so this year the nation's capital stock is higher than it was last year.
There has been an 8 percent increase in the quantity of money in circulation that has shifted the AD curve
A hurricane of unprecedented strength has damaged oil rigs, factories, and ports all along the nation's coast
Inflation has occurred during the past year as a result of rightward shifts in the AD curve
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If a marginal cost pricing rule is imposed on the firm in the figure above, the total surplus will be
A) zero. B) $800. C) $400. D) $200.
During a period of economic expansion, when expected profitability is high,
A) the demand curve for bonds shifts to the left. B) the supply curve of bonds shifts to the right. C) the equilibrium interest rate falls. D) the equilibrium price of bonds rises.
Suppose that minimum efficient scale is approximately 20 percent of maximum potential market demand. In that case,
a. there will be approximately 20 firms in the market b. we should expect to see a few large competitors c. we should expect to see many small competitors d. we should expect a natural monopoly to emerge e. minimum efficient scale is too small for perfect competition to exist
A key lesson from the payroll tax is that the
a. tax is a tax solely on workers. b. tax is a tax solely on firms that hire workers. c. tax eliminates any wedge that might exist between the wage that firms pay and the wage that workers receive. d. true burden of a tax cannot be legislated.