By looking at the graphs showing a negative supply shock’s impact on aggregate demand and aggregate supply and on the Phillips curve, we can see that high energy prices in the late 1970s shifted ______.
a. the short-run aggregate supply curve left and the short-run Phillips curve right
b. the short-run aggregate supply curve right and the short-run Phillips curve left
c. both the short-run aggregate supply curve and the short-run Phillips curve right
d. both the short-run aggregate supply curve and the short-run Phillips curve left
a. the short-run aggregate supply curve left and the short-run Phillips curve right
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To the extent that the value of money is less predictable, it becomes
A) more acceptable as a store of value. B) less acceptable as a medium of exchange. C) more acceptable as a standard of deferred payment. D) more acceptable as a unit of account.
The phrase "decreasing marginal benefit" means that
A) the more you consume of the product, the less total benefit you derive. B) the marginal cost will be increasing as you consume more of a good. C) each additional unit of a good you consume gives you less additional benefit than the previous unit. D) Both answers A and B are correct. E) Both answers A and C are correct.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro depreciated by 25% and the dollar appreciated by 25%. b. The euro appreciated by 25% and the dollar depreciated by 20%. c. The euro depreciated by 25% and the dollar appreciated by 20%. d. The euro appreciated by 20% and the dollar depreciated by 25%. e. The euro depreciated by 20% and the dollar appreciated by 25%.
Critics of the regulation of natural monopolies contend that:
A. regulation increases the incentive of firms to lower costs. B. regulated firms may use creative accounting to reduce costs, prices, and profits. C. when rates of return are based on the value of real capital, an uneconomic substitution of labor for capital may occur. D. the industry may "capture" or control the regulatory commission.