A temporary supply shock, such as an increase in oil prices, would
A) shift the IS curve down and to the left and leave the FE line unchanged.
B) shift the IS curve down and to the left and shift the FE line to the left.
C) shift the IS curve up and to the right, but leave the FE line unchanged.
D) have no effect on the IS curve.
D
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The total output produced with any quantity of labor is equal to the sum of the
A) marginal products of each of the workers hired. B) average products of each of the workers hired. C) total wages the firm pays its workers. D) Both answers A and B are correct.
Elasticity of demand equals the ratio of the percentage change in the price of a good to the percentage change in the quantity demanded.
Answer the following statement true (T) or false (F)
If some firms leave a monopolistically competitive market, the
a. remaining firms will charge a lower price to try to capture the released market share b. remaining firms' cost curves will shift upward and to the right c. remaining firms' demand curves will shift to the left d. market demand curve shifts to the right e. remaining firms will produce at a different point on their ATC curves
If a large number of people are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is lower than the true unemployment rate.
Answer the following statement true (T) or false (F)