Changes in expectations about future price levels:
A. affect only the short-run aggregate supply curve.
B. affect only the long-run aggregate supply curve.
C. affect both the long-run aggregate supply curve and the short-run aggregate supply curve.
D. do not affect either the long-run aggregate supply or the short-run aggregate supply curve.
A. affect only the short-run aggregate supply curve.
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According to the kinked demand curve model, regardless of whether a firm increases or decreases price, its total revenues will decrease as a result of the price change
Indicate whether the statement is true or false
In recent years, the highest rate of unemployment among U.S. adults has been among
a. married men. b. adult females. c. adult males. d. black workers.
Suppose an economy is initially in long-run equilibrium, and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy?
What will be an ideal response?
A large "T-statistic" tell us that
A) a tiny change in the independent variable will cause a relatively large change in the dependent variable. B) we do not have enough data to obtain an accurate regression line. C) we can be confident that our estimated coefficient is not zero. D) we should have included more "lags" in our model. E) we have incorrectly switched the dependent and independent variables in our model.