Adverse shocks such as the crop failures of 1972–1973 and the oil price increases of 1974 and 1979 pushed the economy’s
A. aggregate supply curve outward.
B. Phillips curve inward toward the origin.
C. aggregate supply curve inward.
D. aggregate demand curve inward.
Answer: C
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After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of the coffee purchased at the gas station is:
A. $0.50. B. $5.00. C. $10.00. D. $5.50.
The successful introduction and adoption of a new product or process is called
a. invention. b. innovation. c. economies of scale. d. economic growth.
Potential output in an economy is dependent upon which of the following factors?
a. the given supply of resources b. rate of unemployment c. nominal wages d. potential output is not dependent on any of the previous factors
Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost (Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAOn the basis Table 1.1, what is the opportunity cost of producing at point V rather than point U?
A. 4 Stealth bombers. B. 3 Stealth bombers. C. 3 B-1 bombers. D. 1 B-1 bomber.