The immediate-short-run aggregate supply curve is:
A. vertical.
B. downward sloping.
C. upward sloping.
D. horizontal.
Answer: D
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Which of the following is a type of economic analysis?
a. Association b. Resources c. None of these choices is a type of economic analysis. d. Positive
When both inflation and unemployment are concerns, supply-side economists argue in favor of policies to shift the
A. aggregate supply curve to the right and lower the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the right and increase the CPI. B. aggregate supply curve to the left and raise the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the left and decrease the CPI. C. aggregate supply curve to the right and lower the CPI, which is the same policy Keynesian economists would advocate. D. aggregate demand curve to the right because unemployment is a more important concern than inflation.
If firms were forced to take into account the full social costs of production, then
A. output could be increased and pollution levels would decrease. B. output would be unaffected but pollution levels would come down. C. output would decrease but pollution levels would probably remain at the same levels. D. output and pollution levels would decrease.
If a monopoly can produce a good at zero marginal cost, then its Lerner Index is
A) zero. B) one. C) infinity. D) undetermined.