The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward.
B) favorable supply shock, shifting the short-run aggregate supply curve leftward.
C) adverse supply shock, shifting the short-run aggregate supply curve rightward.
D) adverse supply shock, shifting the short-run aggregate supply curve leftward.
D
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Refer to the scenario above. The nominal GDP of the country in Year 1 was ________
A) $280,000 B) $2,200,000 C) $1,400,000 D) $540,000
An increase in productivity in the agricultural sector when the demand curve is inelastic results in __________ prices for consumers and __________ revenues for farmers
A) higher; lower B) higher; higher C) lower; lower D) lower; higher E) no change in; no change in
Economic growth takes place
A. when aggregate demand decreases. B. only if the price level is constant or rising. C. when aggregate supply increases. D. only when both aggregate demand and aggregate supply increase.
If the MPS is 0.05, the MPC is
A. -0.05. B. 0.95. C. 1.05. D. 2.25.