Ceteris paribus, in the long run, a negative supply shock causes
A) the long-run aggregate supply curve to shift to the left.
B) unemployment to fall below its short-run level.
C) equilibrium real GDP to fall.
D) the price level to rise initially, and then return to its lower level.
D
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A drop in Durable Goods Orders should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
One of the negative impacts of export subsidy is that:
a. the price of the domestic good increases in the world market. b. the domestic supply of the goods increases more than proportionately than increase in demand. c. the domestic cost of production of the exportable increase. d. it results in a general deflation and hence the domestic producers incur losses. e. it is financed by the taxes paid by domestic consumers and hence it harms them.
William and Harry each own a rock quarry, both of which are located in different parts of Atlanta . They have each been in business exactly the same length of time. Although their product seems identical, and neither advertises, William earns much larger profits. Can you use the theory of location rent to explain this outcome?
Technically speaking, if price > AVC, then
a. TR > TC b. profit is positive c. TR > TVC d. profit is negative e. the firm should shut down