Proponents of the real business cycle model argue that the short-run aggregate supply curve is
A) flat. B) negatively sloped. C) positively sloped. D) vertical.
D
You might also like to view...
The table below shows data for Indonesia between 2005 and 2006
2005 2006 Money growth rate 21.4 12.0 Real GDP growth rate 5.7 5.5 Assume the rate of velocity change is constant. According to the quantity theory of money, Indonesia's inflation rate A) is higher in 2005 than in 2006. B) was 17.5 percent in 2006. C) is 27.1 percent in 2005. D) will increase over the 12 months.
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output, the marginal external cost per ton is
A) zero. B) $30. C) $80. D) $110.
The LRAC curve
A) is the minimum points on all the short-run ATC curves. B) shows the lowest possible marginal cost of producing the different levels of output. C) shows the lowest attainable average total cost for all levels of output when all inputs can be varied. D) generally lies above the short-run ATC curves.
How will the exchange rate (foreign currency per dollar) respond to an increase in the relative rate of productivity growth in the United States in the long run?
A) Exchange rates will rise. B) Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States, both in the short run and in the long run. C) The exchange rate will be affected in the short run, but not in the long run. D) Exchange rates will fall.