Which of the following would cause a decrease (leftward shift) in the short-run aggregate supply curve (SRAS)?
A. an increase in oil prices
B. an advance in technology
C. an increase in the CPI
D. an increase in the long-run aggregate supply curve (LRAS)
Answer: A
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In Germany, expected future income increased during 2010. This increase led to
A) a downward shift of the consumption function. B) an upward shift of the consumption function. C) a movement upward along the consumption function. D) no movement along the consumption function and no shift of the consumption function. E) a movement downward along the consumption function.
In the short run, a firm cannot change the amount of capital it uses. Therefore the cost of capital is a
A) short-run cost. B) variable cost. C) productivity cost. D) fixed cost. E) marginal cost.
Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government imposes a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?
a. They are equal. b. The after-tax equilibrium quantity is greater than the socially optimal quantity. c. The after-tax equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
When the Fed was created, its governing body was called the Federal Reserve Board, but it was later officially renamed the Board of Governors of the Federal Reserve System
Indicate whether the statement is true or false