The short-run aggregate supply curve is upward sloping for all of the following reasons except:
A. some markets are posted-price markets.
B. some firms adjust their markup in response to an increase in demand.
C. all inputs are fully utilized in the short run.
D. some firms adjust their production in response to an increase in demand.
Answer: C
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Which of the following is an intermediate target of the Fed's policies?
a. Exchange rate b. Unemployment c. Money supply d. Interest rate e. Inflation
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country B decides to specialize in tomatoes, and Country A specializes in bananas. What terms of trade would both countries agree to? One tomato for:
A. four bananas B. six bananas C. one banana D. two bananas
The aggregate demand curve is the sum of all market demand curves in the economy.
Answer the following statement true (T) or false (F)
Net exports is a negative number when:
A. a nation's exports of goods and services are greater than its imports. B. a nation's imports of goods and services are greater than its exports. C. a nation's imports of goods and services rise. D. a nation's imports of goods and services fall.