Suppose there is an increase in the short-run aggregate supply with no change in the long-run aggregate supply. This situation could be the result of
A) an increase in the price of oil.
B) a decrease in the money wage rate.
C) a technological advancement.
D) an increase in the quantity of capital.
B
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In the Solow model, if saving per worker initially exceeds investment per worker,
A) the economy will experience inflation. B) the capital—labor ratio will increase. C) investment per worker will decline. D) saving per worker will decline.
A law that encourages market competition by prohibiting firms from gaining or exercising excessive market power is
a. a patent. b. impossible to enforce. c. an antitrust law. d. an externality law.
An increase in supply means that quantity supplied rises
A. at least one price. B. at a few prices. C. at most prices. D. at all prices.
A tax meant to counter the effect of a negative externality is called:
A. an external tax. B. a social benefit tax. C. a Coase tax. D. a Pigovian tax.