Changes in which of the following shifts the aggregate supply curve? i. the price level ii. the money wage rate iii. potential GDP
A) i only
B) ii only
C) iii only
D) ii and iii
E) i, ii, and iii
D
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The difference between nominal and real exchange rates is:
A) absolute prices. B) foreign prices. C) domestic prices. D) ratio of domestic prices to foreign prices.
Banks historically have used the discount window:
A. sparingly, because it is often seen as a sign of financial trouble for a bank. B. often, because it provides instant access to needed funds for banks. C. often, because its low interest rate can serve as a source of profit for banks. D. only during times of economic boom, when there is a high demand for loans.
As long as a firm can freely dispose of any extra inputs it may have:
A. its production function must slope downward. B. its production function must be concave. C. its production function must slope upward. D. its production function must be convex.
If a perfectly competitive firm has economic profits greater than zero, then we know that
A. the firm is producing at the bottom of the average total cost curve. B. the firm's industry is not in long-run equilibrium. C. the firm's industry is in long-run equilibrium. D. the firm will reduce output.