The investment and capital spending boom of the late 1990s most likely resulted in a(n)
a. increase in aggregate supply.
b. decrease in aggregate supply.
c. steeper aggregate supply curve.
d. flatter aggregate supply curve.
a
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Marginal cost is the
a. change in total cost resulting from the purchase of one more unit of the variable input. b. change in total cost resulting from the production of one more unit of output. c. difference between total fixed cost and total variable cost. d. difference between total cost and total expenditure.
If a central bank reduced inflation by 2 percentage points and that made output fall by 1 percentage points for 2 years and the unemployment rate rise from 3 percent to 5 percent for 2 years, the sacrifice ratio is
a. 1/2. b. 1. c. 2. d. 4.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
Explain the benefits consumers enjoy from competitive markets.
What will be an ideal response?