If resource prices are "sticky" downward and a recessionary gap develops in an economy, the short-run aggregate supply curve will _____
Fill in the blank(s) with the appropriate word(s).
not shift rightward to return the economy to its potential output.
You might also like to view...
According to the National Bureau of Economic Research, the "two most reliable comprehensive estimates of aggregate domestic production" are ________ when dating the beginning and ending of recessions
A) the level of employment and monthly payroll data B) industrial production and wholesale and retail sales C) gross domestic product and gross domestic income D) real manufacturing production and the natural rate of unemployment
When the government runs deficit, it causes the cost of borrowing to:
A. increase, which decreases private demand for loanable funds. B. decrease, which decreases private demand for loanable funds. C. increase, which increases private demand for loanable funds. D. decrease, which increases private demand for loanable funds.
If international trade is based on product differentiation, for a country the basis for
A. importing is that the price of the imports is the same as the price of the domestic products. B. exporting is the domestic production of unique models or varieties demanded by some consumers in foreign markets. C. exporting is that domestic producers can charge a much higher price in the international market. D. importing is that foreign firms usually enjoy external scale economies.
A mining company's extraction costs curve is:
A. Upward-sloping because the more the company extracts, its marginal extraction costs increases B. Upward-sloping because the more the company extracts, its marginal extraction costs decreases C. Downward-sloping because the more the company extracts, its marginal extraction costs increases D. Downward-sloping because the more the company extracts, its marginal extraction costs decreases