For the following changes in the economy, indicate whether short-run aggregate supply or long-run aggregate supply will be affected. Indicate the direction of the change
a. an improvement in manufacturing technology
b. an increase in the world price of antimony (a chemical that the U.S. imports)
c. a bumper potato crop in the southern "potato belt"
a. Both long-run and short-run aggregate supply will increase.
b. Short-run aggregate supply will decrease.
c. Short-run aggregate supply will increase.
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The network of devices directly communicating data to a computer without a person having to enter the data is known as
A) the Internet of Things. B) Big Data. C) Synergistic Communications. D) Artificial Intelligence.
From a social viewpoint, when price = marginal cost:
a. the economy as a whole would be better off if more was produced. b. the economy as a whole would be better off if less was produced. c. firms would be better off by producing less. d. the economic efficiency would be attained as a whole. e. the consumers would be better by consuming less.
A movie theatre raises its admission prices by 10%, which results in a 10% reduction in the quantity of tickets demanded. The demand curve facing this firm is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.
The federal budget deficit: a. becomes less prominent during and after each recession
b. forces the government to issue Treasury bonds. c. decreases the growth rate of the U.S. GDP. d. is common when total federal revenue exceeds total federal outlay.