Which of the following supply shocks would shift the aggregate supply curve inward?
What will be an ideal response?
a decrease in agricultural output
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In order for something to be used as money, it must be _____
a. issued by the government b. issued by banks c. declared to be money d. generally acceptable e. made of something valuable
Which of the following will shift out to the right as productivity increases?
a. Aggregate demand curve b. Aggregate supply curve c. Demand curve d. Supply curve
Mark spends his weekly income on gin and cocktail olives. The price of gin has risen from $7 to $9 per bottle, the price of cocktail olives has fallen from $6 to $5 per jar, and Mark's income has stayed fixed at $46 per week. If you measure gin on the vertical axis and cocktail olives on the horizontal axis, then the budget constraint
a. is steeper after the price changes. b. is flatter after the price changes. c. is the same after the price changes. d. shifts in a parallel fashion to the old budget constraint after the price changes.
A production possibilities frontier separates an attainable region from an unattainable region
Indicate whether the statement is true or false