A change in weather patterns that makes farming more difficult would ____
a) decrease long-run aggregate supply.
b) increase long-run aggregate supply.
c) increase aggregate demand.
d) have no impact on long-run aggregate supply.
Ans: a) decrease long-run aggregate supply.
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Refer to the above figures. Which panel represents the expected relationship between tax revenue and the sales tax rate if static tax analysis is used?
A) Panel 1 B) Panel 2 C) Panel 3 D) Panel 4
The inflation index that is most favored by economists is the
a. Consumer Price Index. b. GDP Implicit Price Defoliator. c. Producer Price Index. d. Commodity Price Index.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
All of the following are non-price determinants of demand EXCEPT
A. number of consumers. B. price of raw materials used in production of the good. C. income. D. price of related goods.