Which of the following macroeconomic variables would be drawn accurately as perfectly inelastic?
A. Aggregate demand
B. Short-run aggregate supply
C. Long-run aggregate supply
D. None of these should be drawn as perfectly inelastic.
C. Long-run aggregate supply
You might also like to view...
Economically speaking, tariffs: a. protect domestic consumers of goods
b. protect foreign producers of goods. c. limit voluntary exchanges. d. protect domestic producers of exported goods.
An argument is sometimes made that moderate inflation may help the economy by making which of the following more flexible?
a. interest rates b. wages in labor markets c. surpluses d. shortages
A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?
a. $5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets b. $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets c. -$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets d. -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets
If a government finances an increase in its expenditures by selling bonds to the public, then the aggregate demand curve will:
A. shift out by the same amount regardless of whether crowding out occurs. B. shift out more if crowding out occurs. C. shift out - but not as much as it would if crowding out didn't occur. D. not shift.