A sharp increase in oil prices along with a decline in labor productivity decline will likely shift the:
A. aggregate demand curve to the left.
B. short-run aggregate supply curve up (to the left).
C. short-run aggregate supply curve down (to the right).
D. aggregate demand curve to the right.
Answer: B
You might also like to view...
Ricardo buys cola and popcorn. Cola sells for $0.50 a can and popcorn sells for $1 per bag. He is in consumer equilibrium. The price of a cola jumps to $1 per can. In his new consumer equilibrium, Ricardo's
A) marginal utility of cola will be equal to his marginal utility of popcorn. B) marginal utility per dollar spent will be 2. C) total utility will be higher. D) marginal utility of cola will decrease.
By convention, there are two major divisions of economics, called:
A. rational economics and irrational economics. B. microeconomics and macroeconomics. C. reservation price and opportunity cost. D. marginal benefit and marginal cost.
A computer you are considering for your business would add $4,000 per year to your profit. It would cost $400 a year to buy a complete maintenance contract so that you would never have repair and upkeep expense. The obsolescence depreciation is 25% a year. The going market interest rate is 5%. Assume all costs and revenue occur at the end of the year. What is the present value of the income stream from the machine?
What will be an ideal response?
If American Airlines engages in predatory pricing, it might:
A.) Lower fares when a new carrier enters the market and then raise fares as soon as the new carrier gains sufficient business. B.) Raise fares when a new carrier enters the market and then lower fares once the new carrier leaves the market. C.) Lower fares when a new carrier enters the market and then raise fares once the new carrier is driven out of business. D.) Lower fares permanently once a new carrier enters the market in order to keep up in the expanding airline industry.