In the short run, an increase in the price level causes which of the following:
a. A rightward shift in the aggregate demand curve
b. A leftward shift in the short-run aggregate supply curve.
c. A rightward shift in the short-run aggregate supply curve.
d. A movement upward along the short-run aggregate supply curve.
d
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Joe and Frank are partners in a delivery business. Their only business asset is the truck they use for deliveries, which is jointly owned by the partners. Frank, while on a business run, speeds through a red light, hits a car, and causes personal injury to the car owner of $150,000 . In the apportionment of liability for this injury among the partners
a. the most that could be taken from Joe is his half-ownership in the truck b. the most that can be taken from Joe is $75,000 c. Joe is not liable at all since he was not the driver d. Joe could be required to pay the full $150,000 in damages e. Joe would be liable only for the amount of profit earned in the trucking business
If a monopolist can practice perfect price discrimination, the monopolist will
a. eliminate consumer surplus. b. eliminate deadweight loss. c. maximize profits. d. All of the above are correct.
Suppose individuals expect that interest rates will decrease in the future. Also assume that the Fed wants to prevent any change in current output. Given this goal of the Fed, the Fed should implement a policy in the current period that
A) shifts the IS curve rightward. B) shifts the IS curve leftward. C) shifts the IS curve leftward and the LM curve upward. D) shifts the LM curve upward. E) shifts the LM curve downward.
T-Shirt Enterprises is selling in a purely competitive market. It is producing 3000 units, selling them for $2.00 each. At this level of output, the average total cost is 2.50 and the average variable cost is $2.20. Based on these data, the firm should:
A. Shut down in the short run B. Decrease output to 2500 units C. Continue to produce 3000 units D. Increase output to 3500 units