Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount. As a result, the price of candy ________ and the quantity of candy ________
A) rises; does not change B) falls; increases C) does not change; increases D) does not change; does not change E) rises; increases
Given its size, the United States does not have to worry about limitations on resources
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition and that the cost curves do not shift, the price of construction in a long-run competitive equilibrium will be:
A. $55 per square foot. B. $60 per square foot. C. $50 per square foot. D. In the long run no construction will be supplied at any price.
To measure the amount of human capital available in a country, it would be best to determine _____.
(A) The literacy rate of that country. (B) The trading partners of that country. (C) If the nation is rich in natural resources. (D) The comparative advantage of the most profitable exported goods.