An upward-sloping short-run aggregate-supply curve is represented by which of the following equations?
a) Quantity of output supplied = Natural level of output + a(Actual price level + Expected price level)
b) Quantity of output supplied = Natural level of output - a(Actual price level - Expected price level)
c) Quantity of output supplied = a(Natural level of output) + (Actual price level - Expected price level)
d) Quantity of output supplied = Natural level of output + a(Actual price level - Expected price level)
Ans: d) Quantity of output supplied = Natural level of output + a(Actual price level - Expected price level)
You might also like to view...
Which statement is true?
A. There was brief depression in the early 1920s. B. Between 1921 and 1929 national output tripled. C. The automobile market was completely saturated by 1921 and sales remained low for the rest of the decade. D. None of these statements are true.
If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce where demand elasticity is ________ if it will produce at all.
A. 1 B. elastic C. inelastic D. Information is inadequate to answer the question.
The short-run Phillips curve shows the combinations of
a. unemployment and inflation that arise in the short run as aggregate demand shifts the economy along the short-run aggregate supply curve. b. unemployment and inflation that arise in the short run as short-run aggregate supply shifts the economy along the aggregate demand curve. c. real GDP and the price level that arise in the short run as short-run aggregate supply shifts the economy along the aggregate demand curve. d. None of the above is correct.
Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Firm X ($/day)$500$514$530$555$585Cost to Firm Y ($/day)$400$420$445$480$520Cost to Firm Z ($/day)$300$325$360$400$550 For all three firms, the marginal cost of pollution abatement is:
A. increasing. B. decreasing and then increasing. C. constant. D. decreasing.