The long-run aggregate supply curve shifts right if
a. the price level rises.
b. the price level falls.
c. the capital stock increases.
d. the capital stock decreases.
c
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Refer to Table 2-9. What is Thailand's opportunity cost of producing one pound of rice?
A) 60 wristwatches B) 20 wristwatches C) 5 wristwatches D) 0.05 units of a wristwatch
Suppose all firms in a competitive market are currently in both short-run and long-run equilibrium. What impact will a lump sum tax have on each firm in the short run? in the long run?
What will be an ideal response?
As debit cards become more popular, individuals will reduce their holdings of currency. Other things constant, how will this impact the money supply?
a. Because more money is held as deposits at banks, the money supply will fall. b. Because more money is held as deposits at banks, the money supply will expand. c. Because debit card expenditures are counted in M2 but not M1, the M1 money supply will fall. d. Because debit card expenditures are counted in M1 but not M2, the M2 money supply will fall.
P = MC is a recipe for financial loss in an innovative firm established by an innovative entrepreneur. Explain.
What will be an ideal response?