In any economy functioning at potential GDP, there are occasions when the short-term aggregate supply curve unexpectedly shifts, causing inflationary pressures. Which of the following is considered to be a common cause of this type of shift?
A. overoptimistic lending by banks
B. sudden rise in input prices
C. a surge of export sales
D. a wave of government spending
Ans: B. sudden rise in input prices
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The key difference between "quantitative easing" and "credit easing" is that ________
A) the goal of the former is to raise expected inflation B) the latter refers to a substantial change in the composition of the central bank's balance sheet C) the latter refers to a substantial expansion of the central bank's balance sheet D) the former is endorsed by Federal Reserve Chairman Ben Bernanke, while the latter was devised by Japan's Prime Minister Shinzo Abe E) none of the above
Much of the responsibility for implementing and enforcing equal employment opportunity has been taken over by individuals and the courts
Indicate whether the statement is true or false
A monopolist earns an economic profit only when:
a. average total cost equals than price. b. marginal cost equals price. c. marginal revenue equals price. d. average total cost is less than price.
Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible
a. True b. False Indicate whether the statement is true or false