A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
The government makes all economic decisions in a mixed economy
Indicate whether the statement is true or false
An economy's production possibilities curve depicts different combinations of goods that can be
a. consumed by households in the economy since households are the suppliers of resources b. consumed by firms in the economy since firms actually do the producing c. produced in the economy with the available technology and resources d. produced and consumed by firms since they are the sole source of production in the economy e. bought and sold by both firms and households on the resource market
By the 1930s, when new technology advanced and craft distinctions blurred, the
a. AFL went out of business b. AFL welcomed nonskilled workers c. AFL restructured d. CIO was formed e. CIO was disbanded