________ may cause a shift of the long-run aggregate supply curve
A) A major earthquake
B) A change in expected inflation
C) A price shock
D) all of the above
E) none of the above
A
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The term that is used to refer to a situation in which one party to a transaction has more or better information than the other party is
A) adverse selection. B) asymmetric information. C) moral hazard. D) deceptive trade practices.
In the AD/AS diagram, what type of unemployment is shown by how close the economy is to the potential or full-employment level of GDP?
a. Natural b. Structural c. Cyclical d. Full
Suppose the government believes that the equilibrium price established on the market by the forces of supply and demand is too low and, to correct it, sets a minimum price. That is to say, price is allowed to be higher, but it cannot be lower than that minimum. Economists call that minimum price a(n)
a. price ceiling b. price floor c. parity price d. deficiency price e. equilibrium price
In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if
A) the marginal propensity to consume (MPC) is lower.
B) the marginal propensity to consume (MPC) is higher.
C) the average propensity to save (APS) is higher.
D) the average propensity to save (APS) is lower.