Which of the following statements accurately describes the situation shown?
a. a movement along the short-run aggregate supply curve and an upward shift in the long-run aggregate supply curve
b. a rightward shift in the short-run aggregate supply curve and a rightward shift in the long-run aggregate supply curve
c. a movement along the long-run aggregate supply curve and no change in the short-run aggregate supply curve
d. a leftward shift in the long-run aggregate supply curve and a rightward shift in the short-run aggregate supply curve
b. a rightward shift in the short-run aggregate supply curve and a rightward shift in the long-run aggregate supply curve
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A commercial bank has no excess reserves until a depositor places $5,000 in cash at the bank. The commercial bank then lends $4,000 to a borrower. As a consequence of these transactions, the size of the money supply has
A. increased by $5,000. B. increased by $4,000. C. not been affected. D. decreased by $5,000.
If two risky assets, A and B, have negative correlation, then when A's yield increases
A) B's yield increases. B) B's yield decreases. C) B's yield can increase or decrease. D) There is not enough information to determine what B's yield will do.
Figure 11-6
The profit-maximizing monopolist in Figure 11-6 will produce ____ units of output.
a.
Q1
b.
Q2
c.
Q3
d.
Q4
Draw a picture to illustrate why total surplus is highest at the competitive equilibrium price and not at a price below equilibrium. Explain your diagram.
What will be an ideal response?