An adverse supply shock would shift:
a. only the short-run aggregate supply curve outward
b. only the long-run aggregate supply curve outward.
c. only the long-run aggregate supply curve inward.
d. only the short-run aggregate supply curve inward.
e. both the long-run and the short-run aggregate supply curves inward.
e
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If the nominal interest rate is 7 percent and the inflation rate is 1 percent, the real interest rate is approximately
A) 7 percent. B) 6 percent. C) 8 percent. D) -6 percent.
The above table shows production combinations on a country's production possibilities frontier. Which of the following is an example of a point that is unattainable?
A) 0 units of good X and 40 units of good Y B) 6 units of good X and 28 units of good Y C) 10 units of good X and 16 units of good Y D) 3 units of good X and 35 units of good Y
A federal program aimed at retraining the unemployed workers of the declining auto and steel industries is designed to reduce which type of unemployment?
a. seasonal b. cyclical c. structural d. frictional
Refer to the diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by:
A. diagram a only.
B. diagram b only.
C. diagram c only.
D. both diagrams b and c.