Does a rise in the price level bring a movement along the aggregate supply curve or does it shift the aggregate supply curve?
What will be an ideal response?
A rise in the price level results in an upward movement along the aggregate supply curve. It does not shift the aggregate supply curve.
You might also like to view...
The buyer's reservation price for a particular good or service is the:
A. largest price the buyer would be willing to pay for it. B. smallest price the buyer would be willing to pay for it. C. price the buyer must pay to ensure he or she gets it. D. same as the market price.
The above figure shows the market for game day t-shirts. If the price of t-shirts is $12, then
A) the market is in equilibrium. B) there is a surplus and the price of t-shirts will fall. C) there is a shortage and the price of t-shirts will fall. D) there is a shortage and the price of t-shirts will rise. E) there is a surplus and the price of t-shirts will rise.
Under second degree price discrimination, the average price per unit paid by high demand consumers is not equal to marginal willingness to pay for one additional unit.
Answer the following statement true (T) or false (F)
The rate of interest charged to commercial banks by the Fed for loans is called the ________ rate.
A. federal funds B. discount C. prime D. commercial paper