The short-run aggregate supply curve slopes upward because:
a. firms normally can purchase some inputs at prices that are temporarily fixed in the short run.
b. firms seek maximum profits and always try to increase output in the short run
c. firms purchase inputs that increase in price as the price level rises in the short run.
d. All of the above are correct.
a
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Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) discouraged workers.
In the long run, following a combination of a negative demand shock and a temporary negative supply shock,
A) both inflation and output return to the original long-run equilibrium values. B) inflation is permanently increased, while output returns to potential output. C) output returns to potential output, while inflation may be higher or lower than its initial value. D) inflation is permanently reduced, while output returns to potential output. E) None of the above.
With ________, firms value assets on their balance sheet at what they would sell for in the market
A) mark-to-market accounting B) book-value accounting C) historical-cost accounting D) off-balance sheet accounting
The U.S. used high-pressure steam engines, whereas the British favored low-pressure engines. The reason for the American preference for high-pressure steam engines was that
(a) low-pressure steam engines, though more efficient, were complicated to build and operate and America lacked skilled labor compared to England. (b) the high-pressure steam engines used extravagant amounts of wood fuel. The U.S. abundance of wood compared to Europe made building high-pressure steam engines cheaper in the U.S. (c) Americans simply lagged behind technologically compared to England and continued to use the outdated high-pressure steam engines. (d) England had patents on the superior low-pressure steam engine and would not allow other nations to use the technology.