An increase in the expected price level shifts short-run aggregate supply to the
a. right, and an increase in the actual price level shifts short-run aggregate supply to the right.
b. right, and an increase in the actual price level does not shift short-run aggregate supply.
c. left, and an increase in the actual price level shifts short-run aggregate supply to the left.
d. left, and an increase in the actual price level does not shift short-run aggregate supply.
d
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Marginal costs rise if marginal product falls
Indicate whether the statement is true or false
A nation's country-risk premium increases if:
a. Expected inflation becomes harder to predict. b. The average maturity structure in the nation rises. c. None of the above d. Central bank policies become more predictable. e. All of the above.
If Sam receives a pay cut and the income effect outweighs the price effect on his labor supply decision, he will:
A. work the same hours no matter what. B. quit and not work at all. C. work less hours. D. work more hours.
Select the graph above that best shows the change in the market specified in the following situation: In the market for digital cameras, when the productivity of workers in the digital camera industry increases.
Graph A Graph B Graph C Graph D