A short-lived increase in oil prices caused by destruction of oil-producing and oil-refining facilities by a large hurricane will
A. shift the SRAS curve to the right.
B. shift the SRAS curve to the left.
C. shift the AD curve to the right.
D. shift the LRAS curve to the right.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
In his 1951 book, Social Choice and Individual Values, Kenneth Arrow used the term "unanimity" to mean
a. A beats B only if everyone prefers A to B. b. if everyone prefers A to B, then A beats B. c. if A beats B and B beats C, then A must best C. d. everyone who is eligible to vote must vote; otherwise, the outcome is invalid.
Most studies of mineral abundance have assumed that
a. Resources are relatively smoothly distributed in the earth's crust b. Resources are unevenly distributed in the earth's crust c. Resource prices will continue to rise in the near future d. Economically recoverable reserves will decrease in the near future e. The economic supply of resources will remain fixed
When L.L. Bean decides to increase its prices due to general inflation, they must reprint the millions of catalogs they produce and distribute. The costs associated with doing so in response to inflation are called:
A. shoe-leather costs. B. menu costs. C. printing costs. D. tax distortions.