If firms increase their prices because of a change in inflationary expectations, the AS curve will shift to the left.
Answer the following statement true (T) or false (F)
True
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The average price of ten commodities is $330. If an eleventh commodity whose price is $600 is included in the calculation, the new average is:
A) $330.35. B) $450.25. C) $354.54. D) $254.54.
The gains from trade that are possible when two countries have different opportunity costs for wheat and coffee are realized when
A) trade occurs and resources are reallocated within the two countries. B) the two countries continue to produce the same quantities of wheat and coffee. C) each country has an absolute advantage in one of the two commodities. D) the demand curves in both countries shift inward.
In the case where the LM schedule is relatively steep and the IS schedule is relatively flat, the most effective policy would be a change in
a. money supply. b. government expenditures. c. government spending financed by a change in taxes. d. taxes.
If the firms in an oligopoly collude, the results will approximate what other type of industry?
a. perfect competition b. monopolistic competition c. monopoly d. none of the above