If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money supply to shift
a. aggregate demand right.
b. aggregate demand left.
c. aggregate supply right.
d. aggregate supply left.
b
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An increase in net exports will shift the aggregate expenditures curve ________.
A. downward and the aggregate demand curve rightward B. downward and the aggregate demand curve leftward C. upward and the aggregate demand curve leftward D. upward and the aggregate demand curve rightward
Amanda lives in France. She received $5,000 as a wedding gift from a relative living in the U.S. This is an example of a(n) ________
A) factor payment to France B) transfer payment to France C) import by the U.S. D) export by the U.S.
Which of the following statements identifies the difference between variable costs and fixed costs?
A) Variable costs are the costs incurred on variable factors of production, whereas fixed costs are the costs incurred on all factors of production. B) Variable costs of a firm are zero after it shut downs, whereas it continues to incur the fixed costs of production in the short run. C) Variable costs exist even when the production is zero, whereas fixed costs exist only when there is some positive production. D) Variable costs are incurred only in the long run, whereas a firm incurs some fixed costs in both the short run and the long run.
A stable rule of law
A) invariably turns losses into profits. B) allows people to cooperate more effectively with one another. C) converts price searchers into price takers. D) renders the law of comparative advantage ineffective.