In the long run, supply shocks
a. are of no concern
b. are automatically offset so that the full-employment level of output is restored
c. cause the long-run AS curve to shift
d. have no effect on the wage rate
e. are automatically offset so that output and the price level return to their original values
B
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In the 1980s, banks lost many of their __________ borrowers, because these borrowers were able to sell their commercial paper to __________
A) small; savings-and-loan associations B) small; money market mutual funds C) large; savings-and-loan associations D) large; money market mutual funds
A decrease in the price of a firm's output will shift the firm's demand curve for labor to the right, other things being equal
a. True b. False Indicate whether the statement is true or false
A stereo system in Mexico costs 3,200 Mexican pesos. If the dollar price of one Mexican pesos is $0.11, then the U.S. dollar value of the same stereo system is $352
a. True b. False Indicate whether the statement is true or false
The principal economic cost of growth is:
A. higher interest rates B. higher inflation rates C. higher unemployment rates D. consumption sacrificed for capital formation