If most people expect the inflation rate will increase, the:
A. short-run aggregate supply curve would shift to the left.
B. aggregate demand curve would shift right.
C. long-run aggregate supply curve would shift right.
D. short-run aggregate supply curve would shift to the right.
Answer: A
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What will be an ideal response?
It may be advisable for a firm to stay in business, even if it's losing money,
a. but only in the short run b. but only if its profit covers the loss c. but only in the long run d. because "things may change" e. when the owner has lots of money
Most of the world's population lives in
A. North America. B. the LDCs. C. Western Europe. D. the NICs.
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1) An increase in imports (independent of a change in the U.S. price level) will increase both U.S. aggregate supply and U.S. aggregate demand. 2) An increase in business excise taxes will shift the aggregate supply curve leftward. 3) A decrease in per-unit production costs will shift the aggregate supply curve leftward. 4) The aggregate supply curve (short run) becomes steeper as the economy moves rightward and upward along it. 5) Cost-push inflation is depicted as a rightward shift of the aggregate demand curve along an upsloping aggregate supply curve.