Aggregate supply denotes the relationship between the __________________ that firms choose to produce and sell and the _________________, holding the price of inputs fixed.
a. total quantity; price level for output
b. type of goods; input price of raw materials
c. price of goods; number of employees
d. total inputs; types of goods
a. total quantity; price level for output
You might also like to view...
Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = $1.00 (U.S.) on Wednesday, and on the following Monday the exchange rate was $0.75 (U.S.) = 1.00 British pound
Which of the following best describes what happened between Wednesday and the following Monday? A) The U.S. dollar appreciated against the British pound. B) The British pound appreciated against the U.S. dollar. C) The U.S. dollar depreciated against the British pound. D) Both answers B and C are correct.
When the price level rises, the long-run aggregate supply curve ________
A) shifts rightward B) does not shift C) slopes upward D) shifts leftward
Classicals argue that an adverse supply shock would
A) raise neither the natural rate of unemployment nor the actual rate of unemployment. B) raise the actual rate of unemployment, but not the natural rate of unemployment. C) raise the natural rate of unemployment, but not the actual rate of unemployment. D) raise both the natural rate of unemployment and the actual rate of unemployment.
Since the War on Poverty was started in 1965, the United States has spent more than $12 trillion on income maintenance programs. The effect has been to
A) reduce poverty levels substantially. B) reduce poverty levels moderately. C) have virtually no effect on poverty levels. D) increase poverty substantially.