During 2008, oil price increases
A) did not shift the short-run aggregate supply curve as far to the left as similar increases had 30 years earlier.
B) shifted the short-run aggregate supply curve farther to the left than similar increases had 30 years earlier.
C) shifted the aggregate demand curve farther to the left than similar increases had 30 years earlier.
D) shifted the aggregate demand curve farther to the right than similar increases had 30 years earlier.
A
You might also like to view...
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
A country initially has an equilibrium real interest rate of 4 percent and an equilibrium quantity of investment of $2 trillion. The government's budget deficit then increases. According to the crowding-out effect, the
A) demand for loanable funds curve shifts rightward, the real interest rate rises, and investment decreases. B) supply of loanable funds curve shifts rightward, the real interest rate rises, and investment increases. C) supply of loanable funds curve shifts leftward, the real interest rate falls, and investment decreases. D) demand for loanable funds curve shifts leftward, the real interest rate falls, and investment increases. E) demand for loanable funds curve shifts rightward, the real interest rate falls, and investment increases.
When a firm maximizes its profit, which of the following is correct for firms in monopolistic competition and perfect competition?
A) P = MC for both types of firms. B) P = MR = MC for firms in perfect competition and P > MR = MC for firms in monopolistic competition. C) MR = MC for firms in perfect competition and MR > MC for firms in monopolistic competition. D) P > MR = MC for firms in both perfect competition and monopolistic competition. E) P = ATC always for firms in both perfect competition and monopolistic competition.
If a nation produces more than it spends what do we know about: A. its net exports? B. its net capital outflow? C. its saving in relation to its domestic investment?