The quantity that sellers wish to sell tends to ________ as price increases, and so the supply curve is ________ sloping.
A. decrease; upward
B. increase; upward
C. decrease; downward
D. increase; downward
Answer: B
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A rapid increase in the price of oil will tend to
A) shift long-run aggregate supply to the left. B) shift aggregate demand to the right. C) shift long-run aggregate supply to the right. D) shift short-run aggregate supply to the left.
Suppose that if your income is $100,000, your tax is $20,000, but if your income is $200,000, your tax is $45,000. Such a tax is
A. Proportional. B. Regressive. C. A flat tax. D. Progressive.
Suppose there is an oil supply shock to the U.S. economy due to an embargo by major oil producing nations. According to the real business cycle theory, the supply shock will, other things being equal
A. cause real Gross Domestic Product (GDP) to decline both in the short run and in the long run. B. push the economy into an expansionary phase of the business cycle. C. cause economy-wide deflation. D. push real Gross Domestic Product (GDP) upward in the short run but downward in the long run.
The primary source(s) of price variability is
A. unemployment. B. supply variability. C. demand variability. D. demand and supply variability.