For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their investment in new capital, then the ________ shifts ________.
A. short-run aggregate supply line; downward
B. aggregate demand curve; right
C. aggregate demand curve; left
D. short-run aggregate supply line; upward
Answer: B
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Between 2015 and 2016, the CPI of a small nation rose from 182 to 185. If household incomes rose by 3% during that period of time, which of the following is true?
A) The purchasing power of household income remained constant between 2015 and 2016. B) The purchasing power of household income rose between 2015 and 2016. C) The purchasing power of household income fell between 2015 and 2016. D) The CPI cannot be used to determine how the purchasing power of household income changes over time.
A profit-maximizing monopolist will stop production while MR is still greater than MC
a. True b. False Indicate whether the statement is true or false
The majority of federal expenditures is spent on
A. Public sector purchases of goods and services. B. National Defense. C. Private sector purchases of goods and services. D. Income transfers.
Firms share technology with rivals,
a. in order to better compete with their rivals. b. in order to help out when their rivals are in trouble. c. to share the substantial risks of innovation. d. because they are required to by law. e. in order to pass false information to their rivals in order to drive them out of business.