Which of the following must occur to achieve large and lasting increases in output?
A. A shift in aggregate supply to the left.
B. An increase in the long run aggregate supply curve.
C. An increase in the use of existing capacity.
D. A commitment to contractionary fiscal policy.
Answer: B
You might also like to view...
A demand schedule shows
A) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. B) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. C) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. D) the quantities that people plan to buy in all possible circumstances. E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.
Private markets are most likely to produce goods that are
a. neither rival nor excludable b. rival, but not excludable c. socially desirable, regardless of whether they are rival or not d. both rival and excludable e. rival, but not profitable
In the absence of any government regulation on price, if a firm has no power to set price on its own, one can safely conclude
A) the demand curve for the firm's product is horizontal. B) there aren't many firms in the industry. C) the market is in long-run equilibrium. D) the firms in this industry are not profitable.
A change in the price level will cause a shift in the expenditure schedule
a. True b. False Indicate whether the statement is true or false