Explain why the short-run aggregate supply curve (SRAS) is upward sloping, while the long-run aggregate supply (LRAS) curve is a vertical line
The SRAS curve slopes upward because of sticky wages and workers' misperceptions. However, these are all temporary phenomena that will be resolved over time. In the long run, wages will become unstuck and misperceptions will be replaced by accurate perceptions, making the LRAS a vertical line at Natural Real GDP.
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In the early 1900s, Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line. What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?
A) It became linear. B) It shifted down. C) It shifted up. D) It became flatter.
What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics
Economics
A) is a social science. B) is concerned with limited resources. C) is concerned with unlimited wants. D) All of the above are correct.
Christine works as a receptionist in an office. She is not supposed to use the Wi-Fi connection provided by the company to access social-networking Web sites
However, she often uses the Wi-Fi to access these Web sites because her browsing activities are not monitored by her employer. This is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a free-rider problem