The Keynesian aggregate supply schedule slopes upward because of
a. unstable expectations.
b. inflexible wages and prices.
c. changes in technology.
d. differences between actual and expected price levels.
B
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Assume a nation has a fixed exchange rate, and the central bank decreases the reserve requirement. What is the net effect on the money supply (given)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The change in the money supply is ambiguous. b. The money supply can not change. This is an example of the "Impossible Trilogy." c. The money supply rises. d. The money supply falls.
One of the objectives of the health-care reform bills passed in March 2010 was to bring _____________ people into the pool of insured persons so that insurance policies would become ________________. However, provisions in the bill are likely to make the average cost of an insurance policy _____________ than it would have been without reform
A) fewer; cheaper; lower B) fewer; more expensive; lower C) more; cheaper; lower D) more; cheaper; higher E) none of the above
Graphically the intersection of the aggregate demand curve and the short-run aggregate supply line determines:
A. long-run equilibrium. B. exogenous spending. C. potential output. D. short-run equilibrium.
Product differentiation allows a firm to charge a higher price because the residual demand curve facing the firm
A) is more elastic than the residual demand curve without product differentiation. B) is less elastic than the residual demand curve without product differentiation. C) is horizontal. D) shifts to the left.