Firms are willing to change the aggregate quantity of output supplied based on price in:
A. both the short and long run.
B. the short run only.
C. the long run only.
D. Price does not affect the quantity that firms supply.
Answer: B
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The U.S. economy has had persistent inflation in recent decades. A possible explanation for the inflation is that
A) there have been decreases in the growth rate while aggregate demand has remained unchanged. B) growth in aggregate demand has been greater than growth in aggregate supply. C) there have been decreases in aggregate demand while aggregate supply has remained unchanged. D) there have been increases in the growth rate while aggregate demand has remained unchanged.
Facts, measurements, or statistics that describe the world are referred to as:
A) data. B) models. C) hypothesis. D) empiricism.
The most important economic benefit from specialization is that it
A) makes it possible for an economy to begin using money. B) leads to an increase in the standard of living in an economy. C) makes barter possible. D) eliminates the need for financial markets.
Persistent U.S. deflation between 1879 and the mid-1890s was primarily due to the fact that the ___________ was growing faster than the _________
a. supply of money; demand for money b. demand for money; supply of money c. demand for money; demand for goods d. demand for goods; supply of money