In the above figure, starting at E1, if there is a supply shock that is temporary, the
A. aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1.
B. aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0.
C. aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1.
D. aggregate supply would shift to SRAS1 and then return to SRAS0.
Answer: D
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Suppose a monopolist faces a constant elasticity market demand curve with price elasticity equal to -2. What will be the price charged by this monopolist assuming constant marginal cost of 10.
A. 100 B. 80 C. 50 D. 30 E. 20 F. 10 G. infinity H. None of the above
What is the lowest price at which a firm produces an output? Explain why
What will be an ideal response?
Which of the following is true of other checkable deposits?
a. They are checking account deposits at commercial banks and do not pay any interest. b. They are accounts at financial institutions that pay interest and give the depositor check-writing privileges. c. They comprise solely of demand deposits at mutual savings banks. d. They are not included in the M1 money supply. e. They are savings deposits that earn interest at savings and loan associations.
Refer to Table 17.2. If the price of output is $2 per unit and we observe the firm hiring four workers, if the firm is maximizing profit, the wage rate must be between ________ and ________.
A. $25; $45 B. $30; $35 C. $45; $60 D. $60; $80