The short-run aggregate supply curve in modern Keynesian analysis represents the relationship between
A) the real output of goods and services in the economy and the price level when people have fully adjusted their behavior.
B) the nominal output of goods and services and the real output of goods and services.
C) the real output of goods and services in the economy and the price level.
D) the real output of goods and services in the economy and the price level when people have not fully adjusted their behavior.
D
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When the government establishes a minimum price for an agricultural product above the equilibrium price, the government is creating a(n)
A) price ceiling. B) elevated price. C) price floor. D) surplus price.
A firm with two factories, one in Michigan and one in Texas, has decided that it should produce a total of 500 units of output in order to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plants, the last unit of output produced in Michigan added $5 to total cost, while the last unit of output produced in Texas added $3 to total cost. If the firm produces 201 units in Michigan and 299 units in Texas instead:
A. total cost will decrease $2 B. total cost will decrease $3 C. profit will increase $2 D. both a and b E. none of the above
Which of the following would an economist consider to be investment?
A. Boeing building a new factory. B. Oprah buying a $10 million home from a fellow celebrity. C. A stockbroker buying 10,000 shares of Starbucks stock. D. All of these.
People consistently consider sunk costs when weighing the trade-offs involved in a decision because:
A. they are rational. B. they think at the margin. C. they find it hard to accept their losses. D. they are utility-maximizers.