Which of the following would cause the short-run aggregate supply curve to shift to the left?
A) an increase in the price level
B) an increase in inflation expectations
C) a technological advance
D) a decrease in interest rates
Answer: B
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The demand for apple pies is perfectly elastic. If the government taxes apple pies at $1 a pie, then
A) the seller pays the entire tax. B) the buyer pays the entire tax. C) the seller and the buyer split the tax evenly. D) the seller and the buyer split the tax but the seller pays more. E) who pays the tax depends on whether the government imposes the tax on pie buyers or on pie sellers.
Under English law, the rights of colonists differed from those of the English
Indicate whether the statement is true or false
If Jill's MRS of popcorn for candy is 2 (popcorn is on the horizontal axis), Jill would willingly give up:
A) 2, but no more than 2, units of popcorn for an additional unit of candy. B) 2, but no more than 2, units of candy for an additional unit of popcorn. C) 1, but no more than 1, unit of candy for an additional 2 units of popcorn. D) 2, but no more than 2, units of popcorn for an additional 2 units of candy.
Demand-pull inflation is caused:
a. by increases in production costs. b. by increases in tax rates by the government. c. by trade unions' pressure for wage hike. d. when spending increases in an economy producing at its maximum capacity. e. when increases in the supply of goods are exactly offset by increases in spending.