An increase in production costs will shift the:
A) aggregate demand curve.
B) short-run aggregate supply curve.
C) long-run aggregate supply curve.
D) none of the above.
B
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The free rider problem occurs because:
a. it is easy to exclude others from consuming a good. b. consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others. c. exclusion is costly or impossible, so a consumer or producer can use a good without having to pay for it. d. external costs are imposed on others not directly involved in the transaction. e. individuals are not required to pay for those goods which do not yield any utility to them.
If revenue from a cigarette tax is used to pay for healthcare for people with lung cancer, the cigarette tax may be justified on the basis of
a. the benefits principle. b. the ability-to-pay principle. c. vertical equity. d. horizontal equity.
Which of the following statements is most correct?
A. Reserves are assets of the central bank and liabilities of the commercial banks. B. Reserves are assets of the commercial banks and liabilities of the central bank. C. Reserves are assets of the central bank and liabilities of the U.S. Treasury. D. Reserves are liabilities of the commercial banks and assets of the U.S. Treasury.
Currency and checkable deposits are
Redeemable for gold and silver from the Federal Reserve System Of intrinsic value which determines the relative worth of money Assets of the Federal Reserve Banks or of financial institutions The major components of money supply M1