A sustained increase in total output is possible only if the aggregate
A. Supply curve shifts to the right.
B. Supply curve shifts to the left.
C. Demand curve shifts to the left.
D. Demand curve shifts to the right.
Answer: A
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What will be an ideal response?
Which of the following can always be used to determine the outcome when there are multiple Nash equilibria?
A) the Pareto Criterion B) cheap talk C) Both A and B D) None of the above.
Jill Johnson owns a pizzeria. She currently produces 10,000 pizzas per month at a total cost of $500. If she produced one more pizza her total cost rises to $500.11. What does this tell us about Jill's marginal cost of producing pizzas?
A) The marginal cost of producing pizzas is constant. B) The marginal cost of producing pizzas is falling. C) The marginal cost of producing pizzas cannot be determined without more information. D) The marginal cost of producing pizzas is rising.
According to the quantity theory of money, money growth and inflation are
A) positively correlated. B) negatively correlated. C) independent, that is, not correlated. D) positively correlated if the inflation rate is positive and negatively correlated if the inflation rate is negative.