Which of the following will not cause the aggregate supply curve to fall?
a. A reduction in a nation's level of productivity.
b. An increase in input prices.
c. An increase in the value of the domestic currency.
d. Natural disasters.
.C
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In the short-run:
a. All costs are variable b. Some costs are fixed and some costs are variable c. There are no fixed inputs d. The firm is not constrained to vary output
The classical approach to a downturn in the business cycle was for the government to do nothing
a. True b. False Indicate whether the statement is true or false
The economic theory that suggested an alternative to the rising unemployment and inflation that the static Phillips curve analysis could not explain was the:
a. new classical economic theory. b. monetarist economic theory. c. new Keynesian economic theory. d. classical economic theory. e. traditional Keynesian economic theory.
Central bankers with a relatively steep monetary policy reaction curve will:
A. move interest rates more aggressively when inflation rises, leading to more volatility in output. B. move interest rates less aggressively when inflation rises, leading to less volatility in output. C. move interest rates more aggressively when inflation rises, leading to less volatility in output. D. move interest rates less aggressively when inflation rises, leading to more volatility in output.