Explain how a change in the expected price level would shift the short-run and long-run aggregate-supply curves
Expected price level changes would shift the short-run aggregate-supply curve, but would not shift the long-run aggregate-supply curve.
You might also like to view...
Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?
A) the nominal interest rate that would have been earned on the money B) There is no cost. C) the implicit cost of the money D) the real interest rate that would have been earned on the money
Which of the following is considered an advantage of a sole proprietorship?
A) easy to raise large sums of capital B) limited liability for owner C) profit taxed only once D) permits effective specialization
Supply shows
a. the quantity offered for sale at every possible price. b. the quantity people will buy at every possible price. c. the changes in quantity. d. how price changes when people buy more.
In an open economy, ______ than in a closed economy.
a. expansionary policy will have a greater influence on aggregate demand b. contractionary policy will have a greater influence on aggregate demand c. both contractionary and expansionary policy will have a greater influence on aggregate demand d. both contractionary and expansionary policy will have a smaller influence on aggregate demand