The long-run aggregate supply curve shifts right at the same time as
A) the Laffer curve shifts upward.
B) the production possibilities curve shifts inward.
C) the production possibilities curve shifts outward.
D) the inflation rate increases.
C
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If a monopolist's price is $50 at the output where marginal revenue equals marginal cost and average total cost is $43, then the average profit is $7
Indicate whether the statement is true or false
The marginal benefit to you of drinking one more bottled iced tea is $1.50 . The price of a bottle of iced tea is $1.25. a. If you purchase iced tea you will suffer a net loss of 25 cents per bottle
b. If you purchase a bottle of iced tea, the net gain to you from doing so is 25 cents. c. You will not purchase iced tea if you are acting rationally. d. If you are acting rationally, you will purchase iced tea until the marginal benefit falls to 25 cents.
Two reasons why an economy might operate inside of its production possibilities frontier are
a. productive efficiency and technological change b. depressions and inflation c. recessions and productive inefficiency d. opportunity costs and substitutability of resources used in production e. productive inefficiency and a decrease in the state of technology
If a nation has a comparative advantage in the production of good X, this means that the nation
A. cannot benefit by producing and trading this product. B. gives up less of alternative goods than other nations in producing a unit of X. C. has a production possibilities curve identical to those of other nations. D. is not subject to opportunity costs in producing good X.