The only factor that can cause movement along the aggregate supply curve is the
A. labor force.
B. capital stock.
C. availability of resources.
D. price level.
E. All of these responses are correct.
Answer: D
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In a simple macroeconomic model, replacing the assumption of exogenous investment with the accelerator theory of investment ________ the effect on equilibrium GDP of fiscal policy changes, and ________ the effect on equilibrium GDP of changes in
autonomous consumption. A) increases, increases B) increases, dampens C) dampens, increases D) dampens, dampens
Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price of food is $10. What is the equation for Jane's budget constraint?
A. $25 × Clothing + $10 × Food ? $500 B. ($25 × Clothing) / ($10 × Food) = $500 C. ($25 × Clothing) × ($10 × Food) < $500 D. $25 × Clothing + $10 × Food = $500
Some economists contend that government agencies are generally less efficient than private businesses due to the following reasons, except:
A. Government bureaucracies do not face the profit motive, which is a major incentive that guides private firms B. Government bureaucrats tend to deal with failing programs by putting more resources into the programs C. Incompetent workers gravitate towards government, while motivated workers gravitate towards the private sector D. Bureaucrats, along with the special-interest groups they serve often have enough political clout to keep their agencies going regardless of performance
In most larger cities where there are several grocery stores, the market form is
A. perfect competition. B. monopoly. C. oligopoly. D. monopolistic competition.