The long-run aggregate supply will increase when
A) labor supply decreases.
B) international trade barriers are removed.
C) the price level increases.
D) tax rates increase.
B
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Use the following graph to answer the next question.
All else held constant, a leftward shift of the supply curve would ________.
A. increase the equilibrium quantity of euros B. cause a shortage of euros C. appreciate the dollar D. appreciate the euro
In the short run, an increase in the price level causes which of the following: a. A rightward shift in the aggregate demand curve
b. A leftward shift in the short-run aggregate supply curve. c. A rightward shift in the short-run aggregate supply curve. d. A movement upward along the short-run aggregate supply curve.
Which of the following statements concerning monopoly is NOT true?
A. A monopoly is always undesirable. B. A monopoly has market power. C. A market may be monopolistic because there are some legal barriers. D. There is some deadweight loss in a monopolistic market.
Relative percentage changes are used in measuring price elasticity of demand, so that
A) it does not matter whether price increases or decreases when calculating the elasticity. B) it does not matter what units are used to measure prices or quantities. C) we always obtain a positive number. D) larger numbers indicate greater responsiveness.