Refer to the information provided in Figure 26.3 below to answer the question(s) that follow.
Figure 26.3Refer to Figure 26.3. Hurricane Katrina destroyed a large portion of the infrastructure along the Gulf of Mexico coast. This caused
A. the short-run aggregate supply curve to shift from AS1 to AS0.
B. the economy to move from Point B to Point A along AS1.
C. the short-run aggregate supply curve to shift from AS1 to AS2.
D. the economy to move from Point C to Point B along AS1.
Answer: C
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If, at the firm's projected sales level, the marginal cost is $40, the average cost is $50 and the markup is 30 percent, then its selling price is
A) $40. B) $50. C) $52. D) $65.
A trade deficit experienced by a country during a year generally signals the poor health of the economy
a. True b. False Indicate whether the statement is true or false
When is it best to sell bonds?
A) When interest rates are expected to rise, because this means bond prices will rise. B) When interest rates are expected to fall, because this means bond prices will rise. C) When interest rates are expected to rise, because this means bond prices will fall. D) When interest rates are expected to fall, because this means bond prices will fall.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.