When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the short-run aggregate supply curve (in the absence of misperceptions)
A. slopes upward.
B. slopes downward.
C. is vertical.
D. is horizontal.
Answer: D
You might also like to view...
Suppose we are working with the simplest possible Keynesian-cross multiplier, but with the permanent-income hypothesis figured in. If k = 0.88,
and j = 0.25, the multiplier of a $1 change in government spending goes from ________ in the short run to ________ in the long run. A) 8.33, 1.28 B) 1.28, 8.33 C) 8.33, 4.00 D) 1.13, 4.00 E) 4.54, 8.33
________ is the notion that there is a limit to the information that an economic agent, such as a manager, can comprehend and act on
a. Core competency b. Outsourcing c. Economies of scope d. Bounded rationality
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
Which of the following would most likely be a public good?
A) Sirius Satellite Radio is accessed through a subscription. B) iTunes sells songs through their website. C) a Mariah Carey CD D) Michigan Radio is the state's most listened-to public radio service.