Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and that E is the current short-run aggregate supply (SRAS) curve
If a new discovery of large oil fields in Florida led to an increase in the nation's productive capacities, then we could expect the LRAS curve and the SRAS curve to A) remain B and E.
B) move to A and D.
C) move to C and F.
D) move to A and F.
C
You might also like to view...
When the Rent-A-Limo Company negotiates its new labor contract it finds that the wages it must pay drivers have increased
How does this wage hike affect the Rent-A-Limo Company's average fixed cost, average variable cost, average total cost, and marginal cost?
An efficient economy:
a. uses available resources fully. b. uses the best division of labor. c. produces an output combination at some point along the production possibility curve. d. all of these.
In a past fare war, U.S. Air reduced the price of its Charlotte, North Carolina, to New York City round-trip fare from $198 to $138 to match American Airlines. U.S. Air did so reluctantly, saying it would cost the company millions of dollars in revenue
American, on the other hand, believed the fare cut would increase its revenue. What different assumptions about the underlying price elasticity of demand did each airline believe true?
Which of the following changes will occur to the market for movie tickets when video streaming becomes less expensive and makes it easier to watch videos instantly?
A. The demand curve for movie tickets will shift out, causing the price to increase and the quantity to decrease. B. The demand curve for movie tickets will shift out, causing the price to increase and the quantity to increase. C. The demand curve for movie tickets will shift in, causing the price to decrease and the quantity to decrease. D. The demand curve for movie tickets will shift in, causing the price to decrease and the quantity to increase.