If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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The analysis of a progressive tax is very similar to that of a proportional tax.
A. True B. False C. Uncertain
If autonomous consumption is $1,000 . the MPC is 0.75, net taxes are $500, investment spending is $800, and government purchases equals $500, and NX = $0, what is equilibrium GDP?
a. $1,800 b. $1,925 c. $2,566.7 d. $7,200 e. $7,700
The poverty line
A. is shifted downward from year-to-year. B. is constant. C. is raised from year-to-year. D. is tied to the unemployment rate.
If workers in one part of the labor market unionize, then all else equal, we would expect the wages of unionized workers to ________, and the wages of nonunionized workers to ________.
A. rise; fall B. remain unchanged; fall C. rise; remain unchanged D. fall; remain the same