If producers believe that the increase in their relative prices is large relative to the increase in the general price level, then the slope of the short-run aggregate supply curve will be
A) infinite.
B) small.
C) large.
D) negative.
B
You might also like to view...
An implication of the return-to-entrepreneurship curve is that:
A) for a relatively lower return, there will be more entrepreneurs with at least that return. B) all entrepreneurs in an economy with inclusive institutions have exactly the same return. C) all entrepreneurs in an economy with extractive institutions have exactly the same return. D) for a relatively lower return, there will be fewer entrepreneurs with at least that return.
When there is a shift the aggregate supply curve caused by factors external to a nation's economy, it is called
A) government control. B) an economic anomaly. C) a supply shock. D) a trade imbalance.
In an indifference map, one would most likely see indifference curves that:
a. are positively sloped. b. intersect at the origin. c. cross at the equilibrium point. d. are bowed inward toward the origin. e. represent greater utility as they approach the origin.
When oil prices increased to record levels in the 1970s, salaries dramatically increased for petroleum geologists skilled in finding oil. Those geologists who moved from other areas to the higher paying jobs were
a. seeking to profit from society's needs rather than following the guidance of the invisible hand, which would have led them to seek jobs serving society rather than jobs with higher pay. b. following the guidance of the invisible hand and probably serving society's best interests as well as their own. c. causing oil prices to rise even more by moving to jobs with higher salaries. d. helping themselves but hurting the economy.