A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
You might also like to view...
Which of the following is an example of a product that is made available through public provision?
i. local police protection ii. public schools iii. local fire department A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
When there are significant costs involved with coordinating a private solution to an externality:
A. it likely will not happen. B. a leader will likely be elected to organize the coordination. C. it can act as a motivating factor to solve the externality problem expediently. D. None of these statements is true.
Financial markets are:
A. in many ways the purest expression of the market mechanism. B. a powerful tool for the efficient allocation of scarce resources. C. a global marketplace where sophisticated investors make billion-dollar decisions. D. All of these statements are true.
U.S. imports of sugar
a. have been illegal since the mid-1980s b. harm U.S. sugar producers c. increase the U.S. government's revenue d. are restricted by tariffs e. are restricted by import quotas