Suppose the economy is initially in long-run equilibrium and then it experiences a supply shock in the form of sharply higher energy prices. Which of the following is true?
a. The short-run aggregate supply curve shifts leftward and the long-run supply curve shifts rightward.
b. The short-run aggregate supply curve shifts rightward and there is a movement along the aggregate demand curve.
c. The short-run aggregate supply curve does not shift and the long-run aggregate supply curve shifts rightward.
d. The short-run aggregate supply curve shifts rightward but the long-run aggregate supply curve does not shift.
e. The short-run aggregate supply curve shifts leftward and there is a movement along the aggregate demand curve.
E
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What are the major components of M1? What are the major components of M2? Describe each component
What will be an ideal response?
If your income goes down, you will probably purchase fewer goods and services.
a. true b. false
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to
A. decreasing opportunity costs. B. unemployment. C. specialized resources. D. trade.
If product demand increases and product price increases
A. the marginal revenue product curve will shift to the right. B. the firm will move down the marginal revenue product curve and hire more units of the input. C. the marginal revenue product curve will shift to the left. D. the firm will move up the marginal revenue product curve and hire fewer units of the input.