According to the misperceptions theory, the amount by which producers increase their output when the general price level rises depends on
A. the slope of the aggregate demand curve.
B. the slope of the long-run aggregate supply curve.
C. how much they think their relative prices have increased.
D. the size of the Solow residual.
Answer: C
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A decline in the minimum wage rate offered for janitorial services will cause: a. the labor supply curve to shift rightward
b. the labor supply curve to shift leftward. c. a downward movement along the labor supply curve. d. an upward movement along the labor supply curve.
When the price of home delivered pizza falls, the demand Question 5 options:
A. for frozen pizza decreases. B. curve for home delivered pizza shifts leftward. C. curve for frozen pizza shifts rightward. D. for frozen pizza increases.
Other things equal, if the supply of money is reduced:
A. the demand for money will increase. B. the interest rates will fall. C. bond prices will fall. D. investment spending will increase.
Refer to the information provided in Figure 26.6 below to answer the question(s) that follow.
Figure 26.6Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. A decrease in the Z factors ________ equilibrium output and ________ the price level.
A. decreases; leaves unchanged B. increases; increases C. leaves unchanged; increases D. increases; decreases