Monetarists believe that the aggregate supply curve is relatively steep in the short and long runs. This means they expect
A. inflation with no change in output.
B. increases in output to bring much inflation.
C. increases in output to bring little inflation.
D. decreases in output to bring much inflation.
Answer: B
You might also like to view...
The government imposes a $2.50 per-unit tax on the production of good X. As a result the
A) supply curve for good X shifts leftward and the price of good X rises. B) quantity supplied of good X falls and the price of good X rises. C) demand curve for good X shifts leftward and the price of good X falls. D) supply curve for good X shifts rightward and the price of good X falls. E) supply curve for good X shifts leftward and the price of good X falls.
What is the major source of tax revenue for local governments?
What will be an ideal response?
Based on the graph showing equilibrium output and price for a monopolist, the profit loss from producing too much is located ______.
a. below the marginal revenue curve
b. below the marginal cost curve
c. above the demand curve
d. to the right of the demand curve
The law of demand indicates that as the price of a good increases:
A. suppliers sell less of it. B. suppliers sell more of it. C. buyers buy less of it. D. buyers buy more of it.