If a significant portion of firms in the economy does not immediately adjust product prices, then the short-run aggregate supply curve
A) slopes downward. B) slopes upward. C) is horizontal. D) is vertical.
C
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Which of the following is a major argument of trade optimists?
(a) Industrial policy can increase productivity of developing country manufacturing efficiency. (b) New synthetic substitutes are constantly being discovered and improved. (c) Developing country efficiency would improve with trade liberalization. (d) All of the above.
Compared to high-income countries, low-income countries might have an advantage in achieving higher rates of worker productivity and economic growth in the future. This is because:
a. the economic growth rate begins to diminish as capital deepening increases in high-income countries. b. the invention of new technology is subject to diminishing marginal returns in high-income countries. c. the cost of adaption to new technology is lower in low-income countries than in high-income countries. d. the marginal cost of production decreases more in low-income countries than in high-income countries.
If the cross-elasticity of goods X and Y is positive, then the sales of X move:
A. in the opposite direction as the price of Y, and X and Y are substitute goods. B. in the opposite direction as the price of Y, and X and Y are complementary goods. C. in the same direction as the price of Y, and X and Y are substitute goods. D. in the same direction as the price of Y, and X and Y are complementary goods.
Your enterprising uncle opens a sandwich shop that employs 5 people. The employees are paid $12 per hour, and a sandwich sells for $4.
If your uncle is maximizing his profit, the value of the marginal product of the last worker he hired is ___________, and that worker's marginal product is _______ sandwiches per hour.