Given implicit or explicit resource price agreements, if the actual price level is below the expected price level, the:
a. economy will move rightward along the short-run aggregate supply curve.
b. economy will move leftward along the short-run aggregate supply curve.
c. short-run aggregate supply curve will shift to the left
d. long-run aggregate supply curve will become steeper.
e. short-run aggregate supply curve will become flatter.
b
You might also like to view...
Determine if each of the products below displays any of the following characteristics:
(i) rivalry (ii) nonrivalry (iii) excludability (iv) nonexcludability. a. a freeway during peak commute hours b. an online college course c. infectious disease prevention d. open source software such as Linux e. a movie showing at Century Theatres
Which of the following will most likely occur in the short run when the long-run equilibrium of an economy is disturbed by an unanticipated decrease in aggregate demand?
a. a decrease in output and a higher price level b. an increase in output and a higher price level c. a decrease in output and a lower price level d. an increase in output while prices remain unchanged
The marginal propensity to save (MPS) is equal to
A) MPC + 1. B) 1 + MPC. C) 1 - MPC. D) MPC - 1.
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the total revenue earned by selling 180 gallons of gas?
A) $240 B) $540 C) $840 D) $3,300