One reason why the aggregate supply curve might shift to the left is that:
a. Government spending has increased
b. Consumer incomes have increased
c. Per unit production costs have increased
d. Businesses have become more optimistic
c. Per unit production costs have increased
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising
Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from A) A to E. B) B to C. C) C to D. D) C to B. E) A to B.
Suppose you are on a committee seeking to increase revenue from your city's bus system. If demand is _______, you would recommend raising the fare
a. perfectly elastic b. elastic c. unitary elastic d. inelastic
In a purely competitive industry, each firm:
A. produces a differentiated product. B. can easily enter or exit the industry. C. engages in forms of nonprice competition. D. is a price maker.