In the new Keynesian model, an increase in productivity will cause ________
A) a leftward shift in short-run and long-run aggregate supply
B) a rightward shift in short-run and long-run aggregate supply
C) a leftward shift in short-run aggregate supply and rightward shift in long-run aggregate supply
D) a rightward shift in short-run aggregate supply and a leftward shift in long-run aggregate supply
B
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A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called:
A) a budget line. B) an isoquant. C) an indifference curve. D) a demand curve. E) none of the above
If a price searcher is producing at a level of output such that its marginal cost is $16 and its marginal revenue is $9, the firm should
a. increase output in order to reduce per-unit costs. b. decrease the price of its product and expand output. c. increase price and reduce its rate of output. d. reduce both price and output.
What is the basic goal of creating and adopting the euro?
A. To reduce the economic inefficiencies of exchanging currencies B. To stabilize the level of prices among nations of the European Union C. To give Europeans more trade protection from businesses in the United States D. To comply with the requirement for admission to the World Trade Organization
The law of diminishing marginal utility explains why an individual's demand curve is elastic
a. True b. False