If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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A problem with using commodities such as cattle as money is that they cannot be easily divided into fractions (such as pennies to a dollar), and they fail to retain their value very long once they are divided
Indicate whether the statement is true or false
Money functions as
A. a medium of exchange. B. an unit of account. C. a store of value. D. all of these.
If the stock of money is $50 billion, velocity is 4, and real output is $25 billion, what is the price level?
A. 0.5 B. 2 C. 4 D. 8
Refer to the above table. What does total product equal when 4 units of labor are used?
A) 1328 B) 332 C) 320 D) 960.