Figure 10-5
Given the aggregate demand and aggregate supply conditions depicted in , which of the following is the most likely occurrence?
a.
an increase in resource prices that will stimulate aggregate demand and direct the economy to long-run equilibrium
b.
a decrease in resource prices that will reduce costs and shift SRAS to the right, directing the economy to long-run equilibrium
c.
a continuation of this price level and output in the long run
d.
a shift in LRAS to the left as the result of an increase in the expected inflation rate
b
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In peak-load pricing, the capacity decision is determined by setting ________ marginal revenue equal to long-run ________ cost.
A) off-peak; average fixed B) peak; marginal C) peak; average fixed D) off-peak; marginal
In the Wabash case (1886), the Supreme Court held that:
a. states cannot enact laws that interfere with interstate commerce. b. states could restrict price-discrimination based on person, but not price-discrimination based on place. c. states could regulate railroad rates on long-hauls, but not rates on short-hauls. d. held that railroad practices could not be regulated by any federal or state governing body.
All of the following are examples of stock variables except one. Which one?
a. The amount of currency in circulation b. The amount of money earned each week c. The amount of money needed to construct a new building d. The amount of money in a person's savings account e. The amount of money at the Fed
When the Social Security Act was passed by Congress it was initially intended only to provide full-retirement income for citizens
Indicate whether the statement is true or false