A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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If a country's currency depreciates, then its exports will cost ________ abroad and its imports will cost ________ domestically
A) less; less B) less; more C) more; less D) more; more
As McDonald's expanded globally, it was able to achieve:
A) economies of scope. B) economies of scale. C) diseconomies of scale. D) none of the above.
Since a long run consists of many short runs, the classical model is
a. incorrect every time we look at output data b. accurate during the short run c. paradoxically quite accurate in the long run; however, it is not very accurate in the short run d. our best guide to fluctuations in the economy e. paradoxically quite accurate in the short run; however, it is not very accurate in the long run
As the number of firms in an oligopoly increases, the magnitude of the
a. output effect increases. b. output effect decreases. c. price effect increases. d. price effect decreases.