An increase in aggregate supply that has been brought about by changes in any other factor than the price level will cause _____
a. the aggregate supply curve to shift rightward
b. the aggregate supply curve to shift leftward
c. an upward movement along the aggregate supply curve
d. a downward movement along the aggregate supply curve
a
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An oligopoly created because of economies of scale is called a
A) natural oligopoly. B) legal oligopoly. C) public oligopoly. D) monopolistic oligopoly. E) scale oligopoly.
An increase in investment spending would cause the FE line to
A) shift to the right. B) shift to the left. C) remain unchanged. D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
If lenders think that a particular borrower might default, they will demand a:
A. higher interest rate to make it worth taking that risk. B. lower interest rate to make it worth taking that risk. C. higher interest rate to decrease the amount of risk incurred. D. lower interest rate to decrease the amount of risk incurred.
Taxes on polluting firms have
A. can easily be avoided and are therefore, unsuccessful. B. been successful in reducing water pollution in the Ruhr River basin in Germany. C. more advantageous over voluntarism and direct controls. D. not been used in the United States.