In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A. aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1.
B. aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0.
C. aggregate supply would shift to SRAS1 and then return to SRAS0.
D. aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1.
Answer: B
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Katy Perry's latest album is protected from other artists using her lyrics because of:
A. Specialization B. Opportunity costs C. Property rights D. Incentives
People choose to hold a larger quantity of money if
a. the interest rate rises, which causes the opportunity cost of holding money to rise. b. the interest rate falls, which causes the opportunity cost of holding money to rise. c. the interest rate rises, which causes the opportunity cost of holding money to fall. d. the interest rate falls, which causes the opportunity cost of holding money to fall.
If a country engages in trade with other countries, it is known as
A. An open economy. B. A closed economy. C. A democracy. D. A market economy.
A pollution tax:
A. decreases the price of the good taxed. B. increases the price of the good taxed. C. does not affect the quantity demanded of the good taxed. D. does not affect the price of the good taxed.