An increase in government spending on goods to build or repair infrastructure
a. shifts the aggregate demand curve to the right.
b. has a multiplier effect.
c. shifts the aggregate supply curve to the right, but this effect is likely more important in the long run.
d. All of the above are correct.
d
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Refer to the above figure. It represents supply and demand for The Black Ash Steel Company's output. The firm's plant belches large quantities of smelly fumes and black ash into the air
Residents in the surrounding area have higher medical bills as a result. If the firm is forced to pay the full social cost of its production, what will occur? A) Black Ash's supply curve will shift from SA to SB. B) Demand for the firm's steel will shift to the left. C) The company's supply curve will shift from SB to SA. D) Black Ash will increase its own output to cover the cost increase.
Which of the following has the highest Herfindahl-Hirschman index?
A) monopoly B) monopolistic competition C) oligopoly D) any of the above, depending on the size of firm sales
A perfectly elastic supply curve
a. has no relevance, since real-world supply curves are never perfectly elastic b. is a horizontal straight line c. is a vertical straight line d. is an upward-sloping straight line e. is not a straight line
Federal spending on elementary and secondary education rose from $39.7 billion to $40 billion in 2007. Inflation at the time was 2.5%. Explain what happened to real spending on education in 2007.
What will be an ideal response?