An increase in demand caused no change in the equilibrium price. Thus, supply must be
A. perfectly inelastic.
B. perfectly elastic.
C. inelastic.
D. elastic.
Answer: B
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Which of the following shifts short-run aggregate supply right?
a. an increase in the minimum wage b. an increase in immigration from abroad c. an increase in the price of oil d. an increase in the actual price level
Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above?
A) All the cost curves shift upward.
B) Only the average variable cost and average total cost curves shift upward; marginal cost is notaffected.
C) Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.
D) None of the curves shifts; only the fixed cost curve, which is not shown here, is affected.
Higher interest rates:
a) increase consumption and investment spending. b) decrease consumption and increase investment spending. c) decrease consumption and investment spending. d) increase consumption and decrease investment spending.
If M2 were 2,000, small denomination time deposits were 500, and large denomination time deposits were 300, how much would M3 be?
Fill in the blank(s) with the appropriate word(s).