If the actual price level is lower than the expected price level, an economy will contract in the short run.
a. true
b. false
a. true
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When the dollar appreciates, the prices of imported inputs
A. fall and aggregate supply shifts outward. B. fall and aggregate supply shifts inward. C. rise and aggregate supply shifts outward. D. rise and aggregate supply shifts inward.
A positive supply shock causes ________ to ________
A) aggregate demand; increase B) aggregate demand; decrease C) short-run aggregate supply; decrease D) short-run aggregate supply; increase
One way the government decides how to pay for public goods is:
A. how easy it is to exclude people who don't pay. B. determining who uses the good the most and increasing their property taxes. C. comparing individual's marginal benefits of the good. D. polling the public about the most appropriate funding measures.
Government regulation of _______________ protects customers from high prices in situations where there is no competition that would ordinarily keep prices down.
a. natural monopolies b. monopolistic competition c. perfect competition d. luxury markets