If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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Which of the following is FALSE about the transition from communism to capitalism in Russia and China?
A) China chose a dual track strategy. B) China's transition strategy was considered gradualist. C) Russia chose a rapid transition strategy. D) Russia's transition was aided by the large number of workers it had in heavy industry. E) China's transition was aided by the large number of workers it had in rural agriculture.
Deadweight loss is greatest when
a. both supply and demand are relatively inelastic b. both supply and demand are relatively elastic c. supply is elastic and demand is perfectly inelastic d. demand is elastic and supply is perfectly inelastic
The logic of collective action explains the persistence o f tariffs and quotas as an outcome that is driven by the asymmetry between
A. the benefits distributed across many consumers versus the concentration o f the costs in the hands of a few firms. B. the benefits distributed across many firms versus the concentration of the costs in the hands o f a few consumers. C . the benefit s concentrated in the hands of the few consumers, versus the costs distributed across many firms. D. the benefits concentrated in the hands of the few firms, versus the costs distributed across many consumers.
When analyzing the complete model, which can predict short-run and long-run changes in the exchange rate, one must:
a. start with short-run changes and move toward long-run changes, and thereby determine expectations. b. use only the long-run model because the short-run model is largely irrelevant. c. start with the long-run equilibrium positions where expectations of future exchange rates can be determined, and use those expectations to feed into the short-run model. d. use the short-run model only, because the long run is only a theoretical concept.