Aggregate supply shocks are:
A. the results of fiscal policy actions.
B. inflation shocks or shocks to potential output.
C. the results of monetary policy actions.
D. the results of structural policy actions.
Answer: B
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All growth theory today is "new growth theory" because it considers a broad framework that includes technological progress
Indicate whether the statement is true or false
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Which of the following statements reflect sound economic reasoning?
What will be an ideal response?
If MR=MC and P>AVC, the firm should produce
A. at this quantity. B. zero. C. fewer than this quantity. D. more than this quantity.