Why do wage increases along with increases of other input prices impact the short-run aggregate supply but not the long-run aggregate supply, unless they reflect permanent reductions in the supply of those inputs?
In the short run, wages and other input prices are assumed to be constant along the short-run aggregate supply curve. If the firm has to pay more for its workers or any other input, its costs will rise. That is, the short-run aggregate supply curve will shift to the left. In contrast, a change in wages or any price is generally considered temporary. As such, such a change will not shift the long-run aggregate supply curve.
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What group tends to benefit from the sugar price supports?
A. Manufacturers of products that use sugar B. Individual consumers of sugar C. Producers of other agricultural products D. Producers of sugar E. All of these responses are correct.
Open market operations that represent an attempt to offset short-term fluctuations in bank reserves are known as
A) defensive open market operations. B) dynamic open market operations. C) temporary open market operations. D) equilibrating open market operations.
A person's judgments are based on the value meanings derived from feelings, this is known as:
a. Affective domain b. Cognitive domain c. Construct domain d. Clarification construct
The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:
A. average cost curve. B. market demand curve. C. consumer surplus curve. D. market supply curve.