Which of the following would cause prices and real GDP to rise in the short run?
a. short-run aggregate supply shifts right
b. short-run aggregate supply shifts left
c. aggregate demand shifts right
d. aggregate demand shifts left
c
You might also like to view...
Draw a demand and supply curve for a competitive product, making sure to clearly label the axis. Give a brief explanation for why the resulting equilibrium is economically efficient
What will be an ideal response?
Which of the following is not an example of a public policy?
a. rent-control laws b. minimum-wage laws c. taxes d. equilibrium laws
Suppose a firm finds that an additional dollar spent on labor increases output more than does an additional dollar spent on machines. Under these conditions, the firm:
A. should substitute labor for machines if it wants to increase economic efficiency. B. is technically efficient. C. should substitute machines for labor if it wants to increase economic efficiency. D. is economically efficient.
If the price of train rides is 1 and the price of food is 10, and the MRS of food for train rides expressed by Karl is 5, is Karl a utility maximizer? How do you know? If Karl is not maximizing, what should he do to improve his situation?
What will be an ideal response?