Which of the following is correct if there is an adverse supply shock?
a. The short-run aggregate supply curve and the short-run Phillips curve both shift right.
b. The short-run aggregate supply curve and the short-run Phillips curve both shift left.
c. The short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left.
d. The short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right.
d
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Answer the following statement(s) true (T) or false (F)
1. When a competitive firm earns zero profit, the market price is equal to both the firm's average and marginal costs. 2. In a competitive constant-cost industry, all firms have the same break-even price. 3. A government subsidy would allow all firms in a competitive constant-cost industry to earn a positive profit in the long run. 4. Sunk costs cannot affect a firm's short-run supply, but they can affect its long-run decision to exit the industry. 5. If the market price is currently above the shut-down price, the firm will be making positive profits.
Refer to Scenario 17.2. If the threshold educational level y* is set at 13 1/3,
A) only individuals in Group K will attain it. B) only individuals in Group M will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.
Between 1959 and 2003, the average annual growth rate of real GDP per capita in the United States was about _____
a. 0.1 percent per year b. 2.2 percent per year c. 6.7 percent per year d. 9.3 percent per year e. 15 percent per year
A consumer purchases housing (H) and spends the remainder of income on the composite good (C). The government is considering one of two policies. Policy A taxes housing by $50 per unit consumed
With the tax in place, the consumer purchases 100 units of housing. Policy B collects a lump-sum tax of $5,000 from the consumer's income. Compare the effects of the policies on the consumer's utility/well-being and the amount of housing and composite goods purchased.