Suppose that the money prices of raw materials increase so that short-run aggregate supply decreases. If the Federal Reserve does not respond, the higher money price of raw materials will
i. repeatedly shift the aggregate demand curve rightward and raise the price level.
ii. shift the aggregate demand curve rightward and the aggregate supply curve leftward, raising prices.
iii. result initially in lower employment and a higher price level.
A) i only
B) both i and ii
C) iii only
D) both ii and iii
E) i and iii
C
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Quotas and tariffs both
A) decrease deadweight loss. B) restrict foreign trade. C) cause a loss of revenue to domestic producers. D) lower prices on imported goods.
The Clean Air Act of 1972 required some companies to install the "best available" pollution control technologies. This is an example of:
a. the government using a subsidy to encourage a negative externality. b. the government using the command approach to discourage a negative externality. c. the government using the command approach to encourage a positive externality. d. a marketable pollution permit. e. a pollution tax.
What is the type of companies that provide services by linking individuals to others with similar interests or to companies that sell certain products?
A) not-for-profit firms B) government agencies C) platform firms D) non-transaction firms
If a firm offers a senior citizen discount,
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.