In the case of a permanent negative supply shock
A. both the long-run and short-run aggregate supply curves shift leftward.
B. there are no shifts in either the long-run or short-run aggregate supply curve.
C. only the long-run aggregate supply curve shifts leftward.
D. only the short-run aggregate supply curve shifts leftward.
Answer: A
You might also like to view...
Economists refer to the ideal combination of the price a firm should charge and the quantity a firm should produce as
A) profit maximization. B) maximized production. C) perfect competition. D) optimus prime.
A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis. B) per unit of pollutant is constant. C) per unit of pollutant is lower for low polluting firms. D) per unit of pollutant is proportioned to profits or ability to pay.
Refer to Table 9-11. Which country has a comparative advantage in producing clocks?
A) Belize B) Denmark C) both countries D) neither country
"The government should levy higher taxes on the rich and use the additional revenues to provide better housing for the poor." This statement illustrates: a. the fallacy of composition
b. the basic principle of economics. c. a normative economic statement. d. a positive economic statement.