Which of the following events shifts the short-run aggregate supply curve to the right?
A. An increase in government spending on military equipment
B. A drop in oil prices
C. An increase in price expectations
D. None of the above is correct.
Answer: B
You might also like to view...
Adverse selection is a situation in which one party, as a result of a contract, has an incentive to alter their behavior in a way that harms the other party to the contract
a. True b. False
If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:
A. 4 percent. B. 2 percent. C. ?2 percent. D. ?4 percent.
Under a marginal cost pricing rule, a regulated natural monopoly
A) makes a positive economic profit and there is a deadweight loss. B) makes zero economic profit and there is no deadweight loss. C) incurs an economic loss and there is a deadweight loss. D) incurs an economic loss and there is no deadweight loss.
Suppose that a monopolist must choose between two points on its demand curve: it can sell 100 units for $3 each, or it can sell 150 units for $2 each. Which of the following is true?
a. The monopolist is facing elastic demand. b. The monopolist is facing unit elastic demand. c. The monopolist is facing inelastic demand. d. The monopolist is facing perfectly elastic demand. e. The elasticity of demand cannot be determined with the information given.