A change that shifted the long-run aggregate supply curve to the right would also shift the short-run aggregate supply curve to the right
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The nominal interest rate is approximately equal to the real interest rate minus the inflation rate
Indicate whether the statement is true or false
The idea that new policies change the economic rules and affect economic behavior, so that no one can safely assume that historical relationships between variables will hold when policies change, is known as
A) Okun's Law. B) Say's Law. C) the equation of exchange. D) the Lucas critique.
Centralized planning agencies are a key feature of command economies
a. True b. False Indicate whether the statement is true or false
In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?
a. "Price supports are important because America should preserve the small family farm." b. "Without price supports, the price of wheat and corn will fall by over twenty percent." c. "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." d. "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States."