When output is below its full-employment level, the short-run aggregate supply will shift down and to the right because
A) the expected price level will be below the actual price level.
B) workers' wages will decline.
C) prices of nonlabor inputs will rise.
D) workers' wages will rise.
B
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If there is an excess supply of the domestic currency at a fixed exchange rate,
a. the currency will undergo a devaluation b. the currency will appreciate c. the country must switch to a floating exchange rate d. the central bank must buy up that excess supply or the exchange rate will fall e. the central bank must be up that excess supply or the exchange rate will rise
Usury laws
a. limit the use of land to the production of only certain farm goods b. establish price ceilings on interest rates c. establish price floors on interest rates d. protect consumers from the excessive market power of the large agribusinesses who dominate many farm markets e. set the parity pricing ratios
As the price of land decreases along its demand curve, the relative price of land
a. increases because the prices of other resources have also decreased. b. decreases because the prices of other resources have also decreased. c. increases because the prices of other resources have increased. d. decreases because the prices of other resources are held constant. e. remains constant because the prices of other resources also increase.
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 40 ? Q and a 50 percent chance it will be P = 60 ? Q. The marginal cost of the firm is MC = 3Q. The expected profit-maximizing price is:
A. $30. B. $40. C. $10. D. $20.