Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run?
A) Either SA or SB could represent supply in the long run; in the short run the supply curve must be a horizontal line.
B) SA represents supply in the short run and SB represents supply in the long run.
C) Either SA or SB could represent supply in the short run; in the long run the supply curve must be a vertical line.
D) SB represents supply in the short run and SA represents supply in the long run.
B
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The figure above shows the market for annual influenza immunizations the United States. If there is NO external benefit from health care and the government does not intervene in the market, then the equilibrium price of immunizations is
A) $30. B) $20. C) $40. D) $60. E) $70.
Now suppose competition among several market makers forces the spread down to $4 . How many goods are traded?
a. Four b. Five c. Six d. Seven
Sharon was being treated unfairly by her boss, so she stormed off the job and two days later found another position. For two days, Sharon experienced:
a. cyclical unemployment. b. structural unemployment. c. seasonal unemployment. d. frictional unemployment. e. being out of the labor force.
From the perspective of classical macroeconomic theory, an excess of aggregate spending would:
A. Increase aggregate output and the level of employment in the economy B. Decrease the rate of interest and lower the level of investment C. Increase consumption, and thus move the economy toward the full-employment level of output D. Increase prices, wages, and interest rates, and thus reduce aggregate spending to equal the full-employment level of output