Cost-push inflation occurs
A. when the aggregate supply curve shifts to the left, while aggregate demand remains stable.
B. when the aggregate demand curve shifts to the right, while aggregate supply remains stable.
C. when the aggregate supply curve shifts to the right, while aggregate demand remains stable.
D. when the aggregate demand curve shifts to the left, while aggregate supply remains stable.
Answer: A
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Refer to Figure 12-7. If the market price is P2 the firm
A) will make a profit and produce a quantity of Q2. B) will break even and produce a quantity of Q2. C) will make a profit and produce a quantity of Q1. D) will make a profit and produce a quantity of Q3.
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The imposition of a tariff on computers caused the surplus of the domestic producers to ________ by
A. rise; $44 million. B. fall; $48 million. C. rise; $20 million. D. rise; $800,000.
Briefly explain what you would expect to see happen to spending on health care over time, with health care being considered as a normal good
What will be an ideal response?
The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the market is efficient because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. B) the market is efficient because the total social benefit from milk exceed the total social cost. C) there is a deadweight loss because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. D) there is a deadweight loss because the marginal social cost of the last gallon of milk exceeds its marginal social benefit.