Increases in the capital stock:
a. Shift the short run aggregate supply curve upward
b. Shift the long run aggregate supply curve to the right.
c. Shift short run aggregate supply curves upward and long run aggregate supply curves to the right.
d. Do none of the above
b
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According to the rational expectation view, the government can change real output:
a. with appropriate, well-publicized fiscal and monetary policies b. with appropriate, well-publicized fiscal and monetary policies in the short run, but not in the long run. c. only by making unexpected changes in aggregate demand. d. without ever affecting the price level.
The supply of loanable funds slopes
a. upward because an increase in the interest rate induces people to save more. b. downward because an increase in the interest rate induces people to save less. c. downward because an increase in the interest rate induces people to invest less. d. upward because an increase in the interest rate induces people to invest more.
Refer to the accompanying figure. The absolute value of the slope of the demand curve D1 is ________, and the absolute value of the slope of demand curve D2 is ________.
A. 5/4; 4/5 B. 4/5; 5/4 C. 1/2; 2 D. 2; 1/2
All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. decrease; decrease B. increase; decrease C. decrease; increase D. increase; increase