Which of the following would be most likely to cause the short-run aggregate supply curve to shift left?
A) A reduction in oil prices due to increased drilling.
B) A decrease in investor confidence.
C) A rise in government spending.
D) A spike in food prices due to a drought.
Ans: D) A spike in food prices due to a drought.
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An advance in technology shifts the production function upward and shifts the labor
A) demand curve leftward. B) supply curve leftward. C) demand curve rightward. D) supply curve rightward.
Selling costs, such as advertising, are likely to be a large share of total cost in an industry that is
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) non-profit.
If the consumer price index in Year 1 was 200 and the CPI for Year 2 was 230, the rate of inflation was:
a. 15 percent. b. 7.5 percent. c. 30 percent. d. 230 percent.
Which of the following will increase macroeconomic equilibrium real gross domestic product?
A. a decrease in government spending B. an increase in input prices C. an increase in productivity D. an increase in taxes