If the U.S. government were to relax its restrictions on offshore oil well drilling in Alaska, the result to aggregate supply would be to
A. cause no long-term shifts in aggregate supply.
B. cause a shift in the SRAS to the left.
C. cause a shift in the LRAS to the left.
D. cause a shift in both LRAS and SRAS to the right.
Answer: D
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The opportunity cost of holding money instead of an interest earning asset is the
A) inflation rate minus the real interest rate. B) inflation rate. C) real interest rate. D) nominal interest rate. E) inflation rate minus the nominal interest rate.
Explain how the introduction of an additional competitive market can always solve the efficiency problem that emerges from a positive externality.
What will be an ideal response?
Inefficiency occurs when an economy is operating outside its production possibilities curve.
a. true b. false
Approximately how much of the world's output does the United States produce?
A. 18 percent. B. 5 percent. C. 30 percent. D. 12 percent.