By itself, a supply shock, such as a hike in the price of oil, can
A) cause real GDP to permanently decrease year after year.
B) not result in persisting inflation.
C) be inflationary as long as there is no policy response.
D) result in persisting inflation if aggregate supply persistently increases.
E) result in a persisting wage-price spiral.
B
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Scarcity affects
A) only rich people. B) only poor people. C) only middle income people. D) all people.
When GM advertises its cars, the company is trying to cause a
a. rightward shift in the supply. b. rightward shift in the demand. c. leftward shift in the supply. d. leftward shift in the demand.
If you know that when a firm produces 10 units of output, total cost is $1,030 and average fixed cost is $10, then total variable cost is
A. $104. B. $930. C. $1,130. D. $1,040.
The expected real interest rate (r) is equal to
A. nominal interest rate minus inflation rate. B. nominal interest rate plus expected inflation rate. C. expected nominal interest rate minus inflation rate. D. nominal interest rate minus expected inflation rate.