Which of the following will most likely cause an increase in the long-run aggregate supply curve?
a. a reduction in the general level of prices
b. an increase in the general level of prices
c. an improvement in technology that substantially reduces the cost of generating energy
d. an increase in taxes that makes it more expensive for Americans to import crude oil
C
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If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the
a. consumer has consumer surplus of $2 if he or she buys the good. b. consumer does not purchase the good. c. market is not a competitive market. d. price of the good will fall due to market forces.
As a firm hires more workers, holding the amounts of capital and other inputs constant,
A) output increases at a decreasing rate. B) output increases at a constant rate. C) output increases for a while and then decreases. D) output increases, but we can't be certain whether output increases at an increasing or a decreasing rate.
Consider the market for iPods. What happens if a fantastic new alternative MP3 player is developed and at the same time a boat carrying a large shipment of iPods is attacked by pirates and sunk?
What will be an ideal response?
The first official statement of goals for macroeconomic performance in the United States came with the passage of the
A) Federal Reserve Act of 1913. B) Employment Act of 1946. C) Great Depression Act of 1933. D) Full Employment and Balanced Growth Act of 1978.