In the above figure, illustrate the effect on the AS curve from an increase in the money price of a key resource such as oil
What will be an ideal response?
An increase in the money price of a key resource such as oil squeezes firms' profits and decreases aggregate supply. As illustrated in the figure above, the AS curve shifts leftward, in the figure from AS1 to AS2.
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If a country devotes its resources to acquiring more physical capital it will:
A. decrease its output per person. B. increase its productivity. C. increase its current consumption. D. All of these are true.
Three equivalent ways to measure GDP are total ________, total ________, and total ________.
A. production; income; expenditure B. profits; production; saving C. expenditure; income; profits D. investment; consumption; saving
A common characteristic of oligopolies is:
a. interdependence in pricing decisions. b. independent pricing decisions. c. low industry concentration. d. few or no plant-level economies of scale.
A price floor on the sale of wheat would be likely to benefit
A. bread buyers. B. bread producers. C. wheat farmers. D. flour mills.